SANBI Biodiversity for Life i

AnnualReport INSTITUTE BIODIVERSITY NATIONAL AFRICAN SOUTH SANBI Biodiversity for Life

For submission in terms of the Public Finance Management Act, No. 1 of 1999

August 2011

ISSN 0121-7460

We acknowledge the photographic contributions of SANBI staff, fellow researchers and conservationists with appreciation.

Copies of this report are available from:

SANBI Private Bag X7, Claremont, 7735 Tel: 021 799 8800 • Fax: 021 762 3229 or Private Bag X101, Pretoria, 0001 Tel: 012 843 5000 • Fax: 012 804 3211

Visit our website at www.sanbi.org

Compiled and edited by Liesa Jossel www.madeplain.co.za

Designed by David Davidson www.davidsdesign.co.za

Printed by Shumani Print World on recycled paper SOUTH AFRICAN NATIONAL SANBI BIODIVERSITY INSTITUTE Biodiversity for Life

ANNUAL REPORT 2010|11 SOME USEFUL Acronyms

ABRD Applied Biodiversity Research Division IDP Integrated Development Plan BCSD Biodiversity Conservation and Sustainable Development IYB International Year of Biodiversity BGCI Botanic Gardens Conservation International M & E Monitoring and Evaluation BGIS Biodiversity Geographic Information System MoA Memorandum of Agreement BHCD Biodiversity Human Capital Development MoU Memorandum of Understanding BHCDS Biodiversity Human Capital Development Strategy NAMBAF Namakwa Biodiversity Advisory Forum BIM Biodiversity Information Management Directorate NBA National Biodiversity Assessment BotSoc Botanical Society of South Africa NBG National Botanical Garden CAPE Cape Action for People and the Environment NDF non detriment findings CBO Community Based Organisation NEHAWU National Education, Health and Allied Workers’ Union (South Africa) CCBA Climate Change and Bioadaptation Division NEMBA National Environmental Management Biodiversity Act CFR Cape Floristic Region NEMPAA National Environmental Management: Protected Areas Act CITES Convention on International Trade in Endangered Species of wild fauna and flora NFEPA National Freshwater Ecosystem Priority Areas CoCT City of Cape Town NRF National Research Foundation CoJ City of Johannesburg NRM Natural Resource Management COP Conference of the Parties NWCS National Wetland Classification System CREW Custodians for Rare and Endangered Wildflowers OHS Occupational Health and Safety DEA Department of Environmental Affairs PES Payment for Ecosystem Services DEA & DP Department of Environmental Affairs and Development Planning POSA Plants of Southern Africa DG Director General PRECIS PRE (code for National Herbarium, Pretoria) Computer Information System DHE Department of Higher Education SABIF South African Biodiversity Information Facility DoA Department of Agriculture SAEOL South African Encyclopaedia of Life DPW Department of Public Works SAEON South African Earth Observation Network DST Department: Science and Technology (South Africa) SANBI South African National Biodiversity Institute DWA Department of Water Affairs SATOL South African Tree of Life EAP Employee Assistance Programme SDF Spatial Development Framework ECPB Eastern Cape Parks Board SEDA Small Enterprise Development Agency ECPTA Eastern Cape Parks & Tourism Agency SETA Sector Education and Training Authority EIA Environmental Impact Assessment SK Succulent Karoo EPWP Expanded Public Works Programme SKEP Succulent Karoo Ecosystem Programme GBIF Global Biodiversity Information Facility SUPAR Sustainable Use and Protection Agricultural Resources GCP Gardens Conservation Programme TMF Table Mountain Fund GDARD Gauteng Department of Agriculture and Rural Development TOPS Threatened or Protected Species GEF Global Environment Facility UNEP-WCMC United Nations Environment Programme – World Conservation Monitoring HCD Human Capital Development Centre HDI Historically Disadvantaged Individual WRC Water Research Commission HRD Human Resources Development WWD World Wetlands Day IAIAsa International Association for Impact Assessment (South Africa) WWF-SA World Wildlife Fund-South Africa SANBI Biodiversity for Life

Our Vision, Mission and Values 1 Report of the Chairperson 2 Report of the Chief Executive Officer 3 PERFORMANCE INFORMATION 4 Understanding biodiversity and bio-adaptation to climate change through research 5 Creating models for integrated biodiversity management 9 Conserving biodiversity through our National Botanical Gardens 13 Providing policy advice and support to government 15 Building capacity and sharing information 18 Developing effective systems and processes and building our human resources 22 KEY PERFORMANCE INDICATORS 25 Partners 46 Contents Donors 47 Branches, Divisions and Directorates 48 Organogram 49 FINANCIAL INFORMATION 50 Statement of Responsibility of the Board 50 Report of the Accounting Authority 51 Corporate Governance Statement 53 Report of the Audit Committee 57 Report of the Auditor-General 58 Annual Financial Statements 60 Notes to the Annual Financial Statements 65 Materiality and Significance Framework 104 OUR Mandate

SANBI’s mandate comes from the (h) must establish, maintain, protect and preserve (ii) the identification of bioregions and the contents collections of plants in national botanical gardens and of any bioregional plans; National Environmental in herbaria; (iii) other aspects of biodiversity planning; (i) may establish, maintain, protect and preserve (iv) the management and conservation of biological Management Biodiversity Act collections of animals and micro-organisms in diversity; and No. 10 of 2004: appropriate enclosures; (v) the sustainable use of indigenous biological (j) must collect, generate, process, coordinate and resources; disseminate information about biodiversity and the Section 11. Functions (q) on the Minister’s request, must advise him or her sustainable use of indigenous biological resources on the declaration and the management of, and (1) The Institute and establish and maintain databases in this regard; development in, national protected areas; (a) must monitor and report regularly to the Minister on (k) must allow, regulate or prohibit access by the public (r) must perform any other duties (i) the status of the Republic’s biodiversity to national botanical gardens, herbaria and other (i) assigned to it in terms of this Act; or (ii) the conservation status of all listed threatened or places under the control of the Institute and supply (ii) as may be prescribed. protected species and listed ecosystems; and plants, information, meals or refreshments or render (2) When the Institute in terms of subsection (1) gives advice (iii) the status of all listed invasive species; other services to visitors; on a scientific matter, it may consult any appropriate (b) must monitor and report regularly to the Minister on (l) must undertake and promote research on organ of state or other institution which has expertise in the impact of any genetically modified organism that indigenous biodiversity and the sustainable use of that matter. has been released into the environment including indigenous biological resources; 48. (3) The Institute must the impact on non-target organisms and ecological (m) must coordinate and implement programmes for (a) assist the Minister and others involved in the processes, indigenous biological resources and the (i) the rehabilitation of ecosystems; and preparation of the National Biodiversity Framework, a biological diversity of species used for agriculture; (ii) the prevention, control or eradication of listed bioregional plan or a biodiversity management plan (c) must act as an advisory and consultative body on invasive species; to comply with subsection (1); and matters relating to biodiversity to organs of state and (n) must coordinate programmes to involve civil society in (b) make recommendations to organs of state or other biodiversity stakeholders; (i) the conservation and sustainable use of municipalities referred to in subsection (2); align (d) must coordinate and promote the taxonomy of indigenous biological resources; and their plans referred to in that subsection with the South Africa’s biodiversity; National Biodiversity Framework and any applicable (ii) the rehabilitation of ecosystems; (e) must manage, control and maintain all national bioregional plan. (o) on the Minister’s request, must assist him or her botanical gardens; 60. (2) The Institute must provide logistical, administrative in the performance of duties and the exercise of and financial support for the proper functioning of (f) must manage, control and maintain powers assigned to the Minister in terms of this Act; (i) herbaria; and the scientific authority. (p) on the Minister’s request, must advise him or her on (ii) collections of dead animals that may exist; any matter regulated in terms of this Act, including (g) must establish facilities for horticulture display, (i) the implementation of this Act and any environmental education, visitor amenities and international agreements affecting biodiversity research; which are binding on the Republic; Biodiversity richness for all South Africans OUR 1 Ukunotha kweZemvelo (Biodiversity) kwabo Vision bonke abantu baseNingizimu neAfrika Biodiversity richness for all South Africans. Bohumi bja hlago go ma-Afrika Borwa OUR ’n Biodiversiteitsrykdom vir alle Mission To champion the exploration, conservation, sustainable use, Suid-Afrikaners appreciation and enjoyment of South Africa’s exceptionally rich Upfumesa ha thangalelano ya zwitshilaho biodiversity for all people. swa va-Africa Tshipembe OUR Values Ubuntu – Harnessing, caring, sharing and being at one with all creation

Growth – Nurturing and empowering teams and individuals to grow and reach their true potential

Respect and Tolerance – Creating open, honest relationships built on trust, mutual respect, dignity and fairness and valuing and accepting individuals and diversity

Excellence – Providing service excellence through passion and professionalism

Accountability – Taking pride and responsibility in our work and caring for our environment and communities

Togetherness – Through collaboration we change the world. 2 Report of the Chairperson The International Year of Biodiversity 2010 saw SANBI’s the Second National Communication for Climate Change Appreciation for an interesting and challenging core business make significant inroads into mainstream shows the detrimental impact of climate change and the term discourse and it has been encouraging to see SANBI’s behavioural adaptations we need to make to ensure the profile grow significantly over the past 12 months. survival of the planet. It has been a pleasure to serve on the Board. My term has been an interesting one, filled with highlights, challenges As the Chairperson of the Board, it has been rewarding Furthermore, the very real contributions that biodiversity and opportunities. SANBI is an institute that performs to be involved in the Institute’s transformation from can make to job creation, food security, the delivery of consistently well, and its excellent work can – if fully a narrow botanical focus to a broader biodiversity services such as clean water and air need to be highlighted harnessed – benefit the nation in many worthwhile ways. mandate. In the year under review, this transformation, and communicated by the sector in a way that is deeply building on the foundation laid down over the past compelling and that stimulates positive action. This is a tall three years, was very clearly evidenced by SANBI’s order, but if not achieved, biodiversity will continue to be a various outputs. vague and distant concept for most of our people. Sharing lessons in biodiversity to conserve this invaluable asset Mr Thamsanqa Sokutu, Chairperson of the Board, South African National Biodiversity Institute Biodiversity is such a broad term. It encompasses all life, including species, ecosystems, and landscapes. It also importantly includes people and our daily interactions, inherent connections with our immediate environments, and the social, spiritual and economic value we obtain from the natural world. Some of SANBI’s most interesting work in the past year has been in sharing valuable lessons on what we – humanity – can do to conserve our biodiversity, and in appreciating what a valuable natural capital asset we have. The Institute’s research findings, tools (such as maps and lists), policy advice and expertise all contribute to the pool of knowledge and information required to ensure that our nation’s biodiversity is safeguarded in a sustainable way for the benefit of present and future generations. Bringing biodiversity issues to the notice of decision makers SANBI and the biodiversity sector as a whole still have much to do by way of ensuring that conservation biodiversity becomes recognised by decision makers as a national Members of the Board of SANBI, left to right: Prof. P Omara-Ojungu, Mr S Somyo, Mr F Mketeni, Mr T Frost, Dr T Abrahamse (CEO), Mr T Sokutu imperative. For instance, the work that SANBI has done in (Chairperson), Dr P Hanekom. Not present, inset, left to right: Ms K Montgomery, Ms M Pyoos, Ms T Dingaan. Report of the CEO 3 This year has been busy, productive and exciting. It was a process, and setting up a management committee. We Products such as the Biodiversity Advisor website represent year in which we performed extremely well despite some ended the year with a combined Relationship Building years of collaborative research, knowledge management and very real challenges. We learnt to do ‘more with less’, Exercise and Sustainable Transformation Action Plan. consultation. adapted when necessary, showed great resourcefulness, Financial constraints meant budget deficit management and delivered on our broad and complex mandate, The launch of the Biodiversity for Development publication and continued austerity measures, with a downsizing of the was attended by Minister Edna Molewa, who had been in which includes giving support in a number of ways to the top structure of the organogram, a voluntary retirement office for just 12 days at the time. Department of Environmental Affairs. opportunity given, moving permanent staff to projects, the The many checklists and publications we produced are an Spreading the biodiversity message downsizing of education and absorbing Urban Conservation indication that SANBI has transformed into a biodiversity into the national mainstreaming programme. 2010 was declared the International Year of Biodiversity by Institute. the United Nations, a wonderful opportunity for us, as a Some of SANBI’s highlights biodiversity institute, to get involved and bring awareness Growing the organisation and respecting our to a wide range of people. Our participation began with This year saw the positive effects of the groundwork done mandate with limited resources a national launch in SANBI’s Pretoria Garden with the then in previous years in terms of organisational development, The demands and pressures on public entities increase on Minister of Water and Environmental Affairs, and continued evidenced by a growth in knowledge management, a yearly basis and SANBI is no exception. The expectation with many events hosted throughout our nine Gardens, managed network, mandate driven research and policy is to be all things to all people with not much increase in which over a million visitors enjoyed during the year. guidance. Some signature events included: resources. The trick is to try and serve expectations as much as possible while keeping within our legal mandate and Our work was brought to the attention of the public through • the Human Capital Development Skills Summit, which agreed corporate strategic plan. extensive media coverage on a number of stories, such as brought together a large number of key practitioners, the discovery of Moraea vuvuzela, (so named during the FIFA institutions and organisations to deepen the SANBI I would like to acknowledge the SANBI Board for their World Cup!), our work in protecting cycads from the threat of mandate driven strategy for the sector support, the senior management team who have shown extinction, and the launch of a very important book on the great leadership and maturity during this year, and of course environmental impacts of GM Maize in South Africa. • our role in the Report on the Natural History Collections the clever and hardworking staff of SANBI. of South Africa process, for which we assessed almost I end with a new catch phrase which was inspired by our Finding solutions to internal and budget 100 biodiversity collections new values . . . challenges • publication of the first monitoring framework for uSANBI, uGREAT ! Internally, the challenges of the previous year subsided, genetically modified maize, the culmination of a five- and union relations normalised. The Technical Assistance year collaboration between South Africa and Norway Unit of the National Treasury helped us finish our first and second phases of SANBI’s Sustainable Transformation • finalisation of the Second National Communications Initiative and identified leadership, shared vision and values, report for the United Nations Framework Convention and communication and consultation as key challenges for on Climate Change, which is the foundation for the us to continue addressing. We invested much energy into White Paper on Climate Change in South Africa receiving feedback from our employees on solutions to Dr Tanya Abrahamse these challenges, and implemented changes accordingly, • growing international recognition from a host of Chief Executive Officer including leadership training, a shared vision and values prestigious international organisations. South African National Biodiversity Institute 4

Performance Information UNDERSTANDING 5 Biodiversity and bio-adaptation to climate change through research

Research into biodiversity is a Developing a national strategy for Scientific Authority has been particularly concerned about trade in cycads, which has resulted in the dramatic decline key component of SANBI’s research in biodiversity of almost all of the 38 species in South Africa and the SANBI is responsible for leading the development of a recent extinction in the wild of at least two species. As a work. Guided by the priorities national research strategy that will identify priority areas for result, SANBI convened non-detriment findings workshops of the National Biodiversity biodiversity research and improve the evidence base for and completed preliminary non-detriment findings for 30 policy and management decisions relating to biodiversity. species. Strategy and Action Plan, and We have developed the framework for the strategy, and We also undertook an analysis of all plant species in trade the National Biodiversity identified the research needs. A comprehensive situation to determine priorities for further research and assessment. analysis is underway so that the strategy can be finalised in On the basis of the assessment, the Scientific Authority Framework, we developed a the next reporting period. developed a list of priority plant species and will develop a similar list for animals during its next few meetings. climate change research Developing a national strategy for SANBI also undertook field assessments of the status of strategy, and are in the process biosystematics research Pachypodium bispinosum and P. succulentum that were identified by the CITES Plants Committee as species where Barcoding is a major innovation that uses only a small of developing national trade from South Africa was of concern. The final reports on fragment of DNA to identify species. The International these species will be completed in 2011. strategies for biodiversity and Barcode of Life is the largest biodiversity genomics project globally. This year, as part of the biosystematics research Converting our scientific knowledge biosystematics research. strategy, we led the development of a national strategy for Much of our work is at the establishing a South African node for barcoding, and for of climate change into tools promoting and co-ordinating barcoding. request of the Department of SANBI scientists have gained an enormous amount of Providing support to the Scientific knowledge around climate change, which we have Environmental Affairs. described in academic publications. We are focusing on Authority on plant and animal converting this fundamental knowledge into applications and tools, such as the Biome-Adaptation Framework species in trade approach and Outcomes 10 related objectives in climate SANBI provides scientific as well as logistical support to the change adaptation. A key component of these frameworks Scientific Authority. The statutory Authority met twice this will be a focus on ecosystem-based adaptation strategies year, and completed non-detriment findings for species in aimed at raising awareness of the value of biodiversity for trade including leopard, cheetah and hippopotamus. The enhancing human wellbeing under a changing climate. 6

This effort will add to the growing success of the South Developing an overall climate Monitoring the state of our marine African Bird Atlas Project (SABAP2), which is increasing our ability to assess the impacts of a range of environmental change strategy for SANBI biodiversity changes, including climate change, on biodiversity. Through internal consultation, we developed a Climate One of the main areas of our research this year was around Change Strategy document for SANBI, which will be made protecting our marine biodiversity. We completed the Developing capacity in southern public in the next financial year. marine component of South Africa’s National Biodiversity Africa around biodiversity indicators Assessment, the Offshore Marine Protected Areas Project Projects on threatened species and several marine mainstreaming initiatives. We organised the third and final workshop to develop regional capacity to identify biodiversity indicators, completed The completion of the Offshore Marine Protected Areas Project culminated in the identification of nine focal areas report on them, identify lessons and produce a report. Other projects completed this year include: The workshop was held in Namibia and was attended for offshore spatial management to represent offshore by delegates from seven southern African countries. The • the publication of a conservation assessment of biodiversity, protect threatened and vulnerable ecosystems report was launched at the Convention on Biological amphibians and guidelines for the use of Red List and species, support fisheries’ sustainability and reduce Diversity Conference of the Parties 10 in Japan in October. information bycatch. We also helped to co-ordinate a multi-institutional group to support the implementation of the National A national framework for monitoring biodiversity has been • the finalisation of work on reptiles and butterflies, Protected Area Expansion Strategy. We produced the first developed and is under review. which will be published in 2011. seamless national marine habitat maps reflecting 136 Advising on sustainable seafood in Maps to support integrated water coastal and offshore habitats and conducted a data driven assessment of ecosystem threat status and protection southern Africa resource management levels for all habitat types. A national map of wastewater We provide co-ordinated scientific advice on marine issues, SANBI has co-led a three-year multi-partner project to discharge sites was produced for the first time and a new such as the development of the new seafood list for the identify priority rivers and wetlands that need to be coastline GIS shape file was completed. Southern African Sustainable Seafood Initiative. We co- maintained in good condition to support the healthy New collaborations this year include joint projects with ordinated review workshops and helped to collate scientific functioning of South Africa’s network of freshwater the offshore node of the South African Environmental information to support the listing process. ecosystems, on which we depend for critical services Observation Network and a joint project updating such as water supply and flood regulation. The National linefish status reports with the Oceanographic Research Developing a biodiversity Freshwater Ecosystem Priority Areas project consolidated Institute. The Reef Atlas Project gathered information monitoring strategy freshwater ecological science around the country and and photographs from divers and scientists across South has produced maps that support planning and decision- Africa with more than 300 dive sites, 1,800 reef positions This year, we developed a draft for a comprehensive making by the Department of Water Affairs and Catchment and 1,600 reef photographs now included in the project biodiversity monitoring framework as required by the Management Agencies. database. We are working with the scuba diving industry Biodiversity Act. The strategy will be a key informant on to support this important ecotourism sector and promote how well we are doing with conserving and managing our South Africa as a diving destination. biodiversity. The draft is currently being reviewed. Understanding Biodiversity 7

Monitoring the impact of Early detection of invasive Studying the value and use of genetically modified maize plants saves money pollination South Africa has adopted the use of agricultural When it comes to invasive species, the best time Worldwide, insects provide an essential pollination biotechnology, including genetically modified to act is before the species spreads and becomes service to fruit, nut and vegetable crops, which crops, as a tool for sustainable development. In a major pest. SANBI’s Early Detection and Rapid are integral to improving human nutrition. At the terms of area planted, South Africa is the eighth Response Programme, implemented on behalf same time, there is global concern about decline in largest producer of these crops and part of of Working for Water (currently called the Natural pollinators due to habitat loss, disease, and the use SANBI’s mandate is to monitor and report on the Resources Management Programme), now has a of pesticides. The South African component of an possible environmental impacts. national programme for detecting and assessing international project on the value and sustainable emerging invasive plants and has enabled early use of pollinators was launched in October 2010. A five-year collaboration, forming part of a joint interventions to control some potentially very Already the project is active in Limpopo, the South Africa-Norway Biosafety Cooperation damaging weeds. During 2010, additional funding Eastern Cape and the Western Cape and the Project, resulted in the first monitoring was provided to strengthen the rapid response results are being shared with project partners in framework for genetically modified maize component, and the intention in 2011 is to expand Ghana, Kenya, Brazil, India, Nepal and Pakistan. (MON810), launched in January 2011. the programme of work on invasive animals. 8 CREATING 9 models for integrated biodiversity management

SANBI is involved in a wide Rehabilitating our wetlands while Conserving our grasslands range of programmes and creating jobs as protected areas through The Working for Wetlands programme concretely addresses stewardship projects aimed at protecting, the need for ecosystem rehabilitation while at the same time The South African grasslands biome is the second largest creating jobs and skills. This acclaimed programme turned restoring and reducing loss of biome in South Africa, and also one of the most threatened, ten this year and received a Star Award at the Impumelelo with 30% irreversibly transformed and only 1.9% of the natural habitat in threatened Trust 2010 Sustainability Awards, which recognise public biodiversity target for the biome formally conserved. The service innovation and excellence. biomes and ecosystems, such Grasslands Programme aims to protect and conserve The 2011 World Wetlands Day celebration took place at grasslands by working in partnership with the agriculture, as our grasslands, fynbos and the Verlorenvlei wetland in the Western Cape with an forestry, urban development and coal mining sectors. international delegation of mayors from about 20 cities wetlands. These programmes This year, through our partnership with WWF and attending. The event – with the theme Wetlands, Forests Mpumalanga Tourism and Parks Agency, we achieved and Climate Change – formed part of the International Local provide models for biodiversity the proclamation of 23,600 ha of farmland as Action for Biodiversity Workshop 2011. Since rehabilitation KwaMandlangemphisi Protected Environment under management, through which activities in Verlorenvlei began in 2006, over 2,000 hectares biodiversity stewardship. Through our mainstreaming work of alien vegetation have been eradicated, resulting in an we can share our experiences with the forestry sector, we successfully secured the first increase in the amount of freshwater flowing into the estuary three grassland biodiversity sites owned by forestry and and an increase in bird life. About 39 job opportunities were and lessons learned. declared these as nature reserves under the Protected Areas created through the project. Act. The proclamation will unlock doors for other forestry companies to follow and secure priority grasslands under Working for Wetlands tally for 2010 biodiversity stewardship. 93 wetlands rehabilitated Protecting the Cape Floristic Region 1,478 people employed The Cape Floristic Region is internationally known for its extraordinary plant diversity. This tiny area contains 9,000 162,208 person-days of work plant species, 6,000 of which are found nowhere else on 168 SMMEs used earth. The CAPE Biodiversity Conservation and Sustainable Development project, funded to the tune of US$12 million (164 historically disadvantaged enterprises) by the Global Environment Facility, was created to deal with threats and pressures to this area, including invasive alien 10

plants, agriculture and urban development. During 2010, of Rural Development and Land Reform hosted a national • supporting the development of a Biodiversity Action SANBI oversaw the successful close of the project, which learning exchange in Mpumalanga at Botshabelo, one of the Plan for offshore diamond mining in De Beers ML3 included a two-day conference to celebrate the project’s project sites. Community groups from across the country mining licence area achievements. In the final project evaluation, SANBI received shared lessons on how the land should be managed to benefit • establishing a multi-sectoral offshore biodiversity a ‘highly satisfactory’ rating for its co-ordination role, a rating both the communities themselves and the natural resources. forum to share scarce and expensive offshore rarely achieved. CAPE was also praised for being effective biodiversity information, and support integrated ocean and efficient, with a cohesive team, good leadership and 33% achieved management and responsible offshore industries across excellent team spirit. multiple sectors. of South Africa’s threatened plants in National ‘Insuring’ our seeds for the future Botanical Gardens collections or in the Millennium Conserving the Succulent Karoo The Millennium Seed Bank project is an international project Seed Bank or both through sound environmental whose purpose is to provide an ‘insurance policy’ against Target 34% the extinction of plants in the wild by storing seeds for management future use. SANBI signed a new Access and Benefit Sharing 37% achieved The Succulent Karoo is home to the richest succulent flora Agreement with the Royal Botanic Gardens, Kew, UK for of critically endangered South African plant taxa in on earth, as well as high levels of endemic plants and a further five-year partnership ending in 2015 with the reptiles. The Succulent Karoo Ecosystem Programme has National Botanical Gardens collections or in the Millennium Seed Bank Project. been working in this region to combat pressures such as Millennium Seed Bank or both grazing, agriculture and mining. The Critical Ecosystem Activities related to the project this year included a survey Partnership Fund, which funded the programme, praised among SANBI horticultural staff to identify their horticultural, Target 38% the programme’s work over the last ten years in its collecting and seed banking skills and training requirements, assessment report, which was published this year. and a gap analysis of all Gardens with cultivated collections 85% achieved regarding their plant records infrastructure, systems and of extinct in the wild South African plants in capacity. Our new Garden Records Database was rolled National Botanical Gardens collections or in the Building capacity in southern Africa out across the Gardens and training was provided to Millennium Seed Bank or both around biodiversity strategies horticultural and plant records officers to enable them to Target 70% SANBI made a presentation entitled Integrating biodiversity accurately document, monitor and report on their living into landscape-level planning at a Convention on Biological plant collections. Working with the petroleum and Diversity regional workshop held in Botswana. The aim Sharing lessons on land reform and was to build the capacity of southern African signatories diamond mining sectors to secure to the Convention in order to update National Biodiversity biodiversity based livelihoods our marine biodiversity Strategies and Action Plans and to help facilitate national The Land Reform and Biodiversity Stewardship Programme implementation of the Strategic Plan for Biodiversity aims to demonstrate the successful delivery of both socio- Our marine mainstreaming efforts this year involving the 2011–2020. petroleum and diamond mining sectors included: economic and conservation benefits at a project level and Much interest was expressed in South Africa’s cutting- establish a network of learning regarding land reform and • completing a collaborative project with the petroleum edge approach to systematic biodiversity planning and communal lands and biodiversity stewardship. This year SANBI, sector to build the information base to support sound the potential for our further involvement in capacity the Department of Environmental Affairs and the Department environmental management for this sector development in the SADC region and beyond. Creating Models 11

Sharing experiences of community involvement in conserving nature in Provinces and partners commit National Biodiversity Planning the Cape Flats to the Grasslands Programme Forum: community of practice helping to streamline Creating an awareness and appreciation for nature in The former Minister of Water and development impoverished urban areas is a core aim of the Cape Flats Environmental Affairs and eight MECs Nature project. The project operates by employing a responsible for the environment portfolio people-centred approach to conservation, incorporating South Africa has developed groundbreaking community members and organisations in developing in their provinces signed the Grasslands information tools to help streamline development a strategy to create awareness about biodiversity Declaration, emphasising their commitment to decision-making, while safeguarding precious conservation, and cleaning up polluted areas. the conservation of grassland biodiversity. Over natural resources. These innovative tools were This year the project published a book that documents 16 Grasslands partners signed a memorandum showcased at SANBI’s annual Biodiversity Planning its learning over the last eight years. The book, Growing of agreement with SANBI to commit to the Forum, hosted in Wilderness in the Southern Cape Together: Thinking and Practice of Urban Nature Conservators, implementation of the programme. in March by SANBI and the Department of explores nature conservation management practice that Environmental Affairs. integrates biodiversity and socio-economic development priorities, together with the thinking behind this practice, Addressing the Forum, the Department’s Director- by drawing on experiences documented through case General, Nosipho Ngcaba, highlighted the studies, interviews, workshops and reviews. importance of conserving biodiversity as part of South Africa leads Biodiversity for the nation’s ability to unlock the ‘green economy’, maintaining areas of natural habitat to help adapt Development innovations to climate change, while also creating work The Deputy Minister of Water and Environmental Affairs, opportunities. She said that: ‘South Africa is widely Rejoice Mabudafhasi, launched a groundbreaking recognised as a world leader in systematic publication entitled Biodiversity for Development: South conservation planning. We have made great strides Africa’s Landscape Approach to Conserving Biodiversity and Promoting Ecosystem Resilience in October 2010 at in developing accessible maps and guidelines that the Convention on Biological Diversity’s Conference of can slot directly into our spatial and development the Parties 10 held in Japan. The book was praised for planning, and have made significant inroads into showing that it is possible to address environmental issues the massive task of training municipal and in tandem with other challenges, such as unemployment provincial officials to use these products in making and food crises. The Minister of Water and Environmental wise decisions to site forestry, agriculture, mining, Affairs, Edna Molewa, launched the book locally in Pretoria in November. housing and tourism developments appropriately.’ 12 CONSERVING 13 biodiversity through our National Botanical Gardens

Kirstenbosch, Harold Porter, Gardens host over a million visitors 1,273,804 Hantam, Lowveld, Walter SANBI’s Gardens hosted 1,273,804 visitors during the year, visitors to our National Botanical Gardens illustrating their value as nature-based tourism facilities and Sisulu, Pretoria, Free State, their attraction for South Africans and international visitors. 37,679 KwaZulu-Natal, Karoo Desert Although excellent figures, this was a slight decrease in beneficiaries of environmental education visitor numbers of 1.5%, due to the absence of international Target: 29,000 … these are the nine National concerts at Kirstenbosch, reduced marketing capacity and investment as a result of budgetary constraints, and a poor 75,754 Botanical Gardens that SANBI flowering season in the Karoo Desert and Hantam Gardens. visitors to Kirstenbosch Nevertheless, this represents an 11% increase in budgeted in December (excluding concerts) manages. These magnificent own income for the Gardens for this financial year. Non- Gardens are home to an concert visitor numbers in Kirstenbosch increased year-on- Highest monthly visitor number year by 4%. Visitor numbers increased year-on-year in the in the 97-year history of the Garden extensive range of plants, KwaZulu-Natal (75,010; 19%), Walter Sisulu (187,297; 4%) and A new Garden expected to be gazetted animals, insects and birds and Lowveld (78,280; 1%) Gardens. in the Eastern Cape next year are open to the public to enjoy Over 35,000 education beneficiaries and admire. During this year, SANBI exceeded our target of 29,000 by hosting lessons for 37,679 beneficiaries at our various Garden-based the Gardens continued to Environmental Education Centres. Our concerted efforts to strengthen their roles as key market our environmental programmes to schools that had never participated previously paid dividends with learners nature-based urban centres of of some 60 ‘new’ schools attending lessons. The number of lessons facilitated with learners with special educational biodiversity, education and needs, youth, community and adult groups also increased culture in South Africa. significantly. Even in the Eastern Cape where a formal garden does not exist, significant inroads have been made to conduct biodiversity education programmes. 14

Celebrating the International Year of 97-year relationship with Botanical Expanding our Gardens to under- Biodiversity in our Gardens Society of South Africa cemented represented areas Concerts, exhibitions, festivals, tree planting, clean-up A formal memorandum of understanding was signed As part of our commitment to bringing biodiversity to events, carols by candlelight, environmental theme days… between SANBI and the Botanical Society of South Africa the widest possible range of people, we plan to establish these were some of the activities hosted in the Gardens to provide greater structure and guidance to this important a national botanical garden in each of South Africa’s nine to celebrate the International Year of Biodiversity. Old relationship. The partnership that has existed between provinces. This year, the SANBI Board approved a National Mutual-sponsored Kirstenbosch Summer Sunset Concerts the two organisations since 1913 is considered key to the Botanical Gardens Expansion Strategy, which plans Gardens were attended by 85,278 people at an average of 4,488 per success of South Africa’s National Botanical Gardens. for the Eastern Cape, Limpopo and North West Provinces concert. over the next 5–10 years, as suitable sites are identified and Another Chelsea medal for SANBI funds become available. During the year, a site near East London was identified for that province, and following SANBI’s 35th consecutive annual horticultural exhibit at discussions and negotiations with a range of stakeholders, the Royal Horticultural Society’s Chelsea Flower Show in it will probably be proclaimed, declared and gazetted in London, UK, was awarded a Silver Medal, and the display the next financial year. We have also identified potential recreated in Durban, Johannesburg and Kirstenbosch in the sites for a new Garden in Limpopo Province. months following the actual show. Sharing and supporting African Six environmental theme days were celebrated with various Developing and maintaining beneficiaries at our Environmental Education centres: Water infrastructure Gardens Week, Biodiversity Week, World Environment Week, Weed SANBI continued to support other botanical gardens in With various partners, we developed a new Desert Birds Buster Week, Wetlands Day and Plant Conservation Day. All Africa and the surrounding regions. This included municipal Interpretive Trail in the Karoo Desert Garden, and a new our centres also conducted careers’ expos with posters and and university botanical gardens in South Africa. We also Braille Tree Route in the Pretoria Garden. A new Water-wise brochures distributed to different audiences. assisted garden representatives from Oman, Ghana and Display Garden was developed in the Walter Sisulu Garden, Ethiopia. and a new Useful Plants Garden in the Lowveld Garden. Capital projects completed during the year included new tourism infrastructure in the Harold Porter and KwaZulu- External review to improve our Natal Gardens, as well as new environmental education commercial operations offices in the Walter Sisulu Garden. Interpretive signage With support from National Treasury, an external review was developed for upgraded walking trails in the Hantam of SANBI’s commercial operations was undertaken, which Garden. included visitor surveys in several Gardens. Based on the Since the safety of our visitors is a priority, we continued to recommendations, we developed an action plan that will improve on the security infrastructure in several Gardens. be implemented in the new financial year. PROVIDING 15 policy advice and support to government

A key aspect of SANBI’s role is Reporting on the state of Strengthening biodiversity to provide science-based biodiversity stewardship policy and programmes SANBI’s mandate includes assessing and reporting regularly Biodiversity stewardship involves contractual agreements policy advice, ensuring that on the state of biodiversity in South Africa. For the last two with private or communal landowners whose land is of high South Africa’s excellent years, we have been engaged in analysis for the National biodiversity value, in support of protected area targets set Biodiversity Assessment 2011. The Assessment (previously in the National Protected Area Expansion Strategy. This year, biodiversity science informs the National Spatial Biodiversity Assessment) provides a we provided technical support in the drafting of the National comprehensive evaluation of the state of biodiversity in Biodiversity Stewardship Policy. biodiversity policy. terrestrial, freshwater, estuarine and marine environments, This year, SANBI provided and is published every five to seven years. A report Producing a draft Biodiversity summarising the results will be published during 2011. Management Plan for Pelargonium support to the Department of Supporting the implementation of sidoides Environmental Affairs in the Biodiversity Act Pelargonium sidoides has been used traditionally in South Africa to treat a variety of ailments and, since the late 1800s, various ways. The Biodiversity Act provides important new tools for products based on P. sidoides have been marketed in Europe biodiversity conservation across the landscape, not just in to treat respiratory tract infections. These products are based protected areas. This includes publishing bioregional plans on wild harvesting. We drafted a species management plan, and developing Biodiversity Management Plans. This year, one of the first in terms of the Biodiversity Act, to address the SANBI assisted in developing draft norms and standards for concerns regarding the sustainability of the levels of harvest Biodiversity Management Plans for Ecosystems. Biodiversity to ensure the future of this species. Management Plans may be published for ecosystems of special concern, and provide a mechanism for involving a range of civil society partners in pro-active conservation work. 16

Contributing to climate change with an inception workshop held this year, primarily as a capacity-building event to discuss and gain feedback on policy the draft policy concept note. SANBI engages intensively with a range of national, regional and international science and science policy processes. This Developing guidelines for year, we made significant contributions to: biodiversity education • a Climate Change Strategy for the Biodiversity Sector We held a workshop in September at which we produced • South Africa’s Green and White Papers on a national a recommendations table showing the strengths climate change response and weaknesses of curriculum writers in terms of • South Africa’s Second National Communication to the biodiversity messaging and representation. We aim to United Nations Framework Convention on Climate provide ongoing support by developing environmental Change, which SANBI led, and which has now been guidelines for textbook writers, publishers and teachers. publicly reviewed • the Department’s negotiating teams, especially in Supporting policy around fisheries United Nations Framework Convention on Climate We work closely with both the Oceans and Coasts Change and Convention on Biological Diversity forums. Branch of the Department of Environmental Affairs and the Fisheries Branch of the Department of Agriculture, Kickstarting policy around Forestry and Fisheries. This year, we provided constructive biodiversity offsets comments to support the development of South Africa’s small-scale fisheries policy. Biodiversity offsets are conservation actions intended to compensate for the residual, unavoidable harm to Resource economics and the green biodiversity caused by development projects, such as mining, so as to ensure that there is adequate economy compensation for significant adverse impacts on We convened a Green Economy Think Tank, and developed biodiversity remaining after all feasible attempts to avoid a discussion document on Payments for Ecosystem or mitigate such impacts. Although there is a great deal of Services with a view to supporting the establishment public and private interest in offsets, at present there is no of a national programme in South Africa. Payments for clarity on: Ecosystem Services is the practice of offering payments • what qualifies as biodiversity offsets to landowners and landusers in exchange for managing • when to consider biodiversity offsets their land to provide some sort of ecosystem service, such as the provision of water. These programmes promote • the administrative processes and procedures to be the conservation of natural resources in the marketplace. followed when implementing biodiversity offsets. SANBI participated in a learning exchange with Costa Rica, SANBI, at the request of the Department, therefore initiated the first country to implement a national payments for the development of a National Biodiversity Offsets Policy ecosystem services programme. Providing policy advice 17

Incorporating climate Sending the message into change design principles schools and universities in systematic biodiversity through film planning SANBI collaborated with a non-profit organisation The prestigious international World Resources to produce a set of eight short documentary films Report invited SANBI to submit a case study called ‘CareTakers’ for schools. These films tell entitled South Africa: Ecosystem-Based the personal stories of people involved in nature Planning for Climate Change. conservation. They are designed as a teaching tool, with a facilitators’ guide to promote discussion in The case study, prepared in collaboration learning groups. (www.caretakers.co.za) with SANParks, showcases our innovative work in incorporating climate change design One of the films,The Guardian, was judged principles in systematic biodiversity planning in South Africa – informing both the National best short film Protected Areas Expansion Strategy and the at the international Wild Talk Africa film festival production of fine-scale maps of Critical held at Stellenbosch in March. Biodiversity Areas and Ecological Support Areas in many municipalities and provinces.

Making the case: drawing attention to biodiversity messages among decision- makers In partnership with the Department of Environmental Affairs, SANBI initiated the Making the Case project. This project aims to improve positioning and increase support for biodiversity with decision-makers through a messaging strategy. The draft strategy includes the development of products such as this infographic (left). 18 BUILDING capacityand sharing information 19

Through our extensive managed The Global Biodiversity Information network, SANBI is able to work in Facility: Laying the foundations of a structured and cost-effective the Africa Regional Node workshop Africa was nominated to lead the implementation of the way with a wide range of partners Global Biodiversity Information Facility Africa Regional on different biodiversity issues. Node workshop. SANBI chaired the planning meeting to draw up the agenda and chaired the actual workshop, To optimise our ability to share which was held in Uganda and attended by 14 African countries. The aim of the workshop was to strengthen information and resources in the collaboration, co-ordination and communication across biodiversity sector, we make use continent nodes. of discussion forums, websites, The Biodiversity Advisor website: specimen loans and publications. well-used resource for biodiversity information The Biodiversity Advisor website continues to provide free and easy access to SANBI’s biodiversity information. In addition to the growing number of registered users on the website, we uploaded 21 spatial layers and completed 145 land use analyses. (www.biodiversityadvisor.sanbi.org)

1,159 users registered on the Biodiversity Advisor website 11,665,938 specimen records hosted on the Biodiversity Advisor through the SABIF data portal 20 The South African Biodiversity and higher education institutions to create an enabling Greening schools environment for skills retention, development and planning Information Facility: Contributing – all for the sustainable management of our biodiversity. The Outreach Greening Programme works with partners to promote the development of indigenous, water-wise funds for digitisation SANBI and the Lewis Foundation signed a memorandum of gardens at schools and in communities throughout the understanding in March 2011 to formalise their commitment The South African Biodiversity Information Facility, which country. This year, we greened schools in three provinces: as the lead partners to facilitate, catalyse and implement SANBI manages, is a network consisting of key national Gauteng, Western Cape and Eastern Cape. The popularity of sector-wide initiatives. partners and stakeholders who provide data through the the Greening Programme continues to rise as evidenced by SABIF portal and the end users of the data. These include We have established two networks: media publications both nationally and internationally, with museums, herbaria, universities, conservation agencies, • The Teacher Development Consortium, which is piloting enquiries from the public and even members of parliament. government agencies and departments and NGOs. This a professional development programme for teachers year, SABIF provided R1,263,300 for the digitisation of data • A Human Resources Development Network, whose 14 schools greened in South African institutions. (www.sabif.ac.za) outputs include a toolkit with modules on ‘Working The Biodiversity Information with SETA’s’ and ‘A guide to improved workplace skills Over 4,000 plant specimens loaned for planning’ currently in draft format. Management Forum: Building research An extensive database of environmental training courses capacity and excellence in biodiversity Over two million preserved plant specimens are housed in and providers was compiled which is available on SANBI’s National Herbarium, the KwaZulu-Natal Herbarium information www.skillsforbiodiversity.org.za. and the Compton Herbarium. Researchers across the world make use of these extensive collections. This year, we The annual Biodiversity Information Management Forum Providing a platform for interaction at provided over 4,000 specimens on loan to 31 institutions and brings organisations involved in biodiversity information the Environmental Skills Summit identified 7,082 plant specimens for external clients. together to develop strategic direction, align initiatives and learn from each other. The focus of the 2010 Forum was on We co-hosted the first national Environmental Skills Summit building capacity and achieving excellence in biodiversity in March 2011. About 180 people attended the event, 375 plant specimens added to our herbaria information management. A delegation from Kenya which provided a platform for deliberating challenges and brought a regional perspective and expertise in software formulating solutions, and a forum for interaction between Over 30,000 records added to Precis data base, used for digitising herbarium data. (www.infoforum.org.za) the environmental sector and the skills sector. an electronic database of southern African plants Finalising and implementing Rewarding good environmental Assessing almost 100 biodiversity the Biodiversity Human Capital practice in schools research collections in South Africa Development Strategy The Ecoschools Programme is a national programme aimed To address concerns about the future of natural science at building environmental awareness and practices in In August 2010, SANBI and the Lewis Foundation finalised collections in museums, science councils and universities, schools. The programme recognises environmental best the Biodiversity Human Capital Development Strategy. Its SANBI collaborated in a major assessment of the biodiversity practices by schools through a system of awards. This year, vision is a socially equitable and suitably skilled workforce research collections in South Africa. The assessment of biodiversity leaders, professionals and technicians to with our partners, SANBI successfully co-ordinated the reported on the holdings of almost 100 collections, risks to implement the sector’s complex mandate. We envisage Fynbos node in the Western Cape, which comprises five their security, and the extent of use of the collections and achieving this through supporting organisations nationally schools. One school won a Platinum Award, two schools associated information. Recommendations for securing the to attract young people into ‘green’ careers and to grow won Gold and two achieved International Flags. A funding collections and for increasing access to these were made and build the sector’s supply of high level technical and strategy for the Ecoschools Programme was finalised, and in the report, which will be released after a consultation leadership skills. We also lobby government, business included in the programme strategy. process. 21 Some of this year’s publications Our Biodiversity Series publications • National Protected Area Expansion Strategy • Environment and economy: mind the gap • Ensuring a future for South Africa’s frogs: a strategy for conservation research • Pollen wasps and flowers in southern Africa • Butterflies of South Africa’s National Botanical Gardens. Papers, books, book chapters and popular articles We conducted surveys of poorly explored areas to document plant species and to broaden the herbarium collections, as well as taxonomic research on neglected and priority plants of South Africa. This research resulted in 78 papers in peer-reviewed scientific journals, two book chapters and two books, as well as 20 popular articles this year. These publications included the description of 16 new plant species from South Africa. Our Strelitzia Series publications • Botany and horticulture of the genus Freesia • The Aloe names book • Vegeaation of South Africa, Lesotho and Swaziland (reprint) 22 DEVELOPING effective systems and processes and building our human resources

We are creating an institutional sustainability, we Achieving sustainable environment that attracts, must be economical, efficient, transformation of the Institute SANBI launched a sustainable transformation programme develops and retains skills in effective and transparent, and towards the end of 2009 with the assistance of the Technical the biodiversity sector through have a strong corporate Assistance Unit of the National Treasury. The programme has five phases, three of which are now completed. The first our internal employee identity. three phases identified certain challenges: • Leadership: All senior managers have attended programmes and human One of SANBI’s most important leadership courses capital managed network • Communication: An internal communications strategy assets is its intellectual has been developed and a Management Committee has relationships. Our human property. Our improvements in been established resources strategy emphasises • Shared values: We reviewed SANBI’s existing values the IT field have ensured that and new values were adopted and a change statement career paths, continuous while our intellectual property developed. Our values are on page 1 of this annual report. learning, nurturing talent and a is accessible, it is also transformed appointment Sustainable employment equity safeguarded. transformation strategy. SANBI is striving to redress the inequities of the past by appointing and empowering employees particularly from We are committed to running the designated groups. SANBI according to financial, governance and operational best practice principles. To achieve this and ensure our long-term financial and Developing systems 23

Employee profile Our professional development Our current employee profile is broken down in the table below:

tally for 2010–2011: Race/Gender AM AF CM CF IM IF WM WF TOTAL Numbers 246 108 106 81 7 10 48 86 692 Percentage 35.55% 15.61% 15.32% 11.70% 1.01% 1.44% 6.94% 12.43% 100% 18 work-integrated learning students in Horticulture and Nature Conservation New employee appointments The table below details our appointments in this financial year: 1 Kirstenbosch Scholar Race/Gender AM AF CM CF IM IF WM WF TOTAL 37 interns Numbers 15 4 4 8 1 0 2 4 38 Percentage 39.47% 10.53% 10.53% 21.05% 2.63% 0% 5.26% 10.53% 100% 10 undergraduate bursaries Developing horticultural skills in our Gardens 3 Honours bursaries This year, we expanded our exchange programme, giving our horticultural employees the opportunity to brush up on plant recording techniques, succulent plant maintenance, cycads identification, propagation, cultivation, conservation and maintenance. 9 Masters bursaries Mentoring in research capacity and retaining knowledge The research divisions facilitated two workshops aimed at developing research capacity through mentoring. A third 2 MScs completed (one with distinction) mentoring workshop, aimed at retaining horticultural knowledge, was held at Kirstenbosch. Providing a career ladder for researchers 11 PhDs in progress To attract and retain highly skilled professionals, SANBI initiated the development of a career ladder for researchers. This is part of a broader initiative to develop career models for different streams of biodiversity professionals. 5 postdoctoral students hosted Employee health and wellness The wellbeing of employees is a priority for SANBI as demonstrated by the continuing Employee Assistance Programme and various Employee Health and Wellness Programmes. Throughout the year, awareness sessions focusing on life-threatening diseases and sound financial management were facilitated at all SANBI centres. 24

Building positive employment Completing the development of the relations Institute’s corporate identity Achieving full financial and legal compliance and transparency The implementation of the recommendations of the This year saw the completion of SANBI’s new logo, look and Relationship Building Exercise between SANBI and NEHAWU feel and corporate identity. These reflect our expanded SANBI’s statutory and compliance reports have been has cemented a collegial working relationship between mandate in an appealing and contemporary way. consistently produced and submitted to the relevant the Institute and the Union. The year under review did not authorities such as the Audit Committee, the Board, the Department of Environmental Affairs and National witness any form of industrial action. Developing a one-stop portal Treasury. Rising to the IT and communications We spent time communicating to SANBI employees various This last financial year saw the enhancement and projects, including intranet redevelopment, which will not challenge implementation of the consolidated accounting and only revolutionise the current way of communication and procurement system for a more transparent budgetary This year, we rolled out our office communication services document collaboration but will also benefit the greater control and supply chain management. to improve inter-office communication and reduce our employee community by being a one-stop-shop for all For the first time in the history of SANBI, users carbon footprint. These new services included: company information and resources. from all our Gardens can process their transactions • network infrastructure optimisation Limiting our carbon footprint by electronically from remote sites. • phase one of a telephony optimisation exercise • website redevelopment for the Botanical Society reducing our hardware of South Africa (www.botanicalsociety.org.za), We are proud to have been a case study for DELL and computers, which resulted in us minimising our hardware • the installation of a new backup environment for the infrastructure by 76%, and therefore lowering our carbon Institute. footprint. The case study for review is available at Implementing the second phase of www.dell.com/casestudies/emea our corporate website Our corporate website entered its second phase of We are getting greener development which includes a major technical overhaul and will result in the Institute having an interactive and 76% reduction in IT hardware dynamic site for the first time.

Over 25 million hits on SANBI website Nearly 6 million pages accessed Key Performance Indicators 25 ACTUAL PERFORMANCE measured against key performance indicators

Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate Key Result Area 1: Understanding biodiversity and understanding bio-adaptation to climate change Result 1.1 A biodiversity research strategy and framework for South Africa is developed and implemented and reviewed when appropriate

A strategy that provides a framework for co-ordinated research in Draft National Biodiversity Research Strategy completed Achieved policy-relevant areas to support the National Biodiversity Strategy and Action Plan, the national Biodiversity Framework, the NEMBA regulations, and international agreements Amended Applied Biodiversity Research Strategy Achieved

Signed MOUs, MOAs, SLAs or contracts with partners Achieved Strategic research partnerships, delivering knowledge that is Two booklets on the use of Red List data were published. relevant to national biodiversity priorities (Also speaks to KRA5) Key findings on threatened plants used in bioregional Partly Specific information for bioregions still needs to be programmes communication and fundraising processes achieved extracted and will be done if additional funding can be secured A national strategy developed for zoological systematics in South Partly Strategy will be aligned with National Biodiversity and Africa for incorporation into the overall biosystematics research achieved Biosystematics strategies, when completed A comprehensive biosystematics strategy developed in support of a strategy broader biodiversity research strategy Final document on zoological systematics strategy produced and Partly Strategy will be aligned with National Biodiversity and available achieved Biosystematics strategies, when completed Result 1.2 A national research agenda relating to climate change and bioadaptation is developed and implemented and knowledge beneficiated and documented

CCBA team research activities are aligned with and guided by the Achieved three-year science plan

CCBA team members report progress and performance against Achieved priorities as defined in the three-year science plan A research plan for climate change and bioadaptation is developed and being implemented System map of actors in climate change vulnerability, impacts and adaptation research in South Africa and relevant neighbouring Achieved countries is developed Strategy document including science plan available to Three-year science plan is available to SANBI and external Partly senior SANBI stakeholders, and awaiting Exco approval, stakeholders achieved after which it will be available to external stakeholders Relevant biome-specific adaptation options are being reviewed Climate change adaptation responses: building ecosystem resilience Achieved and summarised in conjunction with collaborators

Result 1.3 Research in key policy-relevant areas is undertaken, guided by the priorities in the National Biodiversity Strategy and Action Plan and the National Biodiversity Framework Research outputs on the risks to biodiversity, the value and Research on land degradation and biodiversity conducted Achieved sustainable use of species and ecosystems and the management of species and ecosystems of special concern Updated electronic maps accessible on BGIS website Achieved Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 26 Appropriate Programme of work for research on high priority TOPS, CITES and Achieved medicinal species At least two student research projects underway Achieved Knowledge generated and capacity strengthened on biodiversity Achieved and ecosystem services Research outputs on the risks to biodiversity, the value and Research papers and reports submitted to partners based on sustainable use of species and ecosystems and the management of population ecological research on threatened seabirds, ibises, and Achieved species and ecosystems of special concern range expanding birds TMF/WWF are unable to fund the project without co- Not Funding secured for Fynbos research from TMF/WWF funding. The future of this programme will be linked to achieved national funding as part of the national research strategy Research papers published by ABRD staff and relevant reports Achieved submitted Full-time students utilise bursaries to value of R300 000 from Research commissioned that supports implementation of the the Grasslands Programme for MSc, PhD or Postdoc research on Achieved NBSAP and NBF priorities in Grasslands research strategy Result 1.4 A comprehensive biodiversity monitoring framework is developed, approved and implemented CCBA team and managed network collaborators are engaged with the monitoring strategy, and are contributing to the delivery of Achieved Climate change impacts and trends monitoring: Managed network required data for monitoring and reporting on climate change impacts and Research activities required to develop scientific publications and Achieved adaptation responses is established assessments are underway Popular media have published articles describing early results Achieved EIA Data Collection Tool is used by provincial officers, EIA Achieved practitioners and scientists Threatened Species identification Tool for law enforcement Achieved officers, provincial officers and scientists developed Biodiversity Indicator report published and launched Achieved Biodiversity Monitoring strategy approved by the Steering Partly A draft strategy is available. The resignation of the project Committee achieved manager has prompted the strategy to be re-visited In conjunction with the UNEP-WCMC, coordinate workshops on Achieved developing regional capacity for developing biodiversity indicators A framework for monitoring biodiversity is developed and An initial project on Early Detection and Rapid Response of implemented invasive species is successfully completed and continued funding Achieved is secured Final report on Norwegian-South African collaboration biosafety Achieved project Monitoring framework for Bt maize is in place Achieved Awaiting publication of the national regulations and lists Not Monitoring framework for listed invasive species is in place by the Minister. Framework will be completed once there is achieved clarity on the requirements for the regulations Strengthened relationship with SAEON through revised MOA or Achieved MOU Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 27 This project was initiated in collaboration with SAEON, but Not recruitment of a suitable post-doc was unsuccessful. The Plan for continuation of environmental observatories is produced achieved MOA with SAEON is under review and a decision on the post-doc will be taken once the MOA has been revised Scientific Authority has access to the scientific information required Achieved for decision making Administrative support provided to the Scientific Authority Achieved All 20 CREW existing groups in the Cape Floral Region, KZN, Mpumalanga and Succulent Karoo have annual plans approved and Achieved implemented Expand the CREW volunteer network to operate into Pondoland and Achieved include work with traditional healers Engage with Historically Black Universities to expand volunteer Achieved network to include more HDIs Effective modelling and experimental approaches developed Achieved Red Lists for priorities species groups published and threatened Achieved species mapped spatially South African Butterfly Conservation Assessment conducted Achieved SANBI managed network partner, the Animal Demography Not Unit (UCT), has not completed this project due to lack South African Reptile Conservation Assessment conducted achieved of funds. Completed manuscript due during the next A framework for monitoring biodiversity is developed and financial year implemented contd. Due to capacity constraints and additional workload on SANBI Threatened Species Strategic Plan produced Not achieved remaining staff Red List Assessments completed for plant species whose status has Achieved changed during 2009 and 2010 Partly There was a delay in getting the database online but steps Red List available online achieved taken to ensure it comes online in the next financial year The Red lists for amphibians was published. The lists for Red lists for priority species groups published and threatened Partly reptiles and butterflies have been delayed due to logistical species mapped spatially achieved problems and will be published in the next financial year IUCN have not processed the original 6,000 assessments Not submitted in 2009–2010 year and have advised that SANBI Priority plant lists published achieved hold further submissions until they have processed the first batch Meetings held with three SADC countries but insufficient South Africa’s plants that occur in other SADC countries that have Partly resources to meet with more. Meetings will take place if been red listed have been endorsed by regional botanists achieved funding obtained IUCN Plant Specialist group Chairperson responsibilities fulfilled Achieved

Approximately 3,500 new records of threatened plants available for Achieved the Northern Regions, the CFR and SK

Northern Regions digitisation officer recruited Achieved A set of national biodiversity indicators that cover the conservation status of species and ecosystems, GMOs, invasive species and the Advanced spatial analysis conducted to produce maps of land Not Discontinued due to resignation of project leader and overall status of biodiversity is continually updated and reported on degradation and land cover achieved budget constraints to the Minister Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 28 Appropriate Cape Floristic Region Land cover data analysis complete and initial Achieved assessment result available Trends and drivers of natural habitat loss identified and final report Achieved available Grasslands M & E framework developed and aligned with national Achieved framework A set of national biodiversity indicators that cover the conservation Final list of indicators secured and data for 50% of status of species and ecosystems, GMOs, invasive species and the indicators gathered and fully aligned with national Bioregional M & E frameworks completed and aligned with Partly overall status of biodiversity is continually updated and reported on processes. Awaiting data from National Biodiversity emerging national framework achieved to the Minister contd. Assessment and Biodiversity Monitoring to finalise headline indicators. Baseline data gathering under way SKEP M & E framework and reporting guideline revised and Partly The completion of the SKEP M & E framework is awaiting aligned to other divisional frameworks achieved finalisation of the national indicators Action plan for implementation will be developed once Action plan developed to help guide the implementation of the Partly framework is complete. However, a list of case study framework achieved indicators has been developed A South African Tree of Life (SATOL) is compiled to facilitate the Checklists available on website and number of species can be Partly Priority groups comprising 40% of 60,000 animal species establishment of a baseline for animal diversity monitoring counted achieved included in checklists to date The southern African plant diversity list is maintained through input An accurate and updated list of southern African plant list widely Partly List available through POSA website; some information to from SANBI’s herbaria accessible through internet achieved be updated Result 1.5 Priority threatened species and ecosystems for South Africa are identified (both spatially and thematically) Spatial analyses are being developed to provide input for guidance on future conservation strategies, taking into account Achieved climate uncertainties Research to develop a new dynamic modelling approach to Climate change vulnerability and impacts assessment – modelling Achieved and validation, with a focus on implications for environmental predict species vulnerability to climate change is being conducted security and human livelihoods Publications are being submitted and accepted and CCBA citation Achieved rate increases CCBA staff are invited to science meetings and into science Achieved leadership positions on climate change National Biodiversity Assessment: Terrestrial Component Draft Achieved reports and draft maps available Partly Final NBA terrestrial component report under review. Final NBA terrestrial technical report available achieved Slower delivery due to capacity constraints Spatial analysis completed and final maps produced and Effective modelling and experimental approaches, and reviews Achieved submitted of best available information, are used to identify priority affected species, ecosystems and ecosystem processes NBA junior conservation planner appointed and mentored Achieved

Deliverables versus contract checked, signed and invoices Achieved processed

Assessment methods developed Achieved Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 29 Maps of marine ecosystem threat status and protection levels Achieved developed NBA Marine Component Report complete Achieved

Effective modelling and experimental approaches, and reviews National Biodiversity Assessment: Marine Component Achieved of best available information, are used to identify priority affected Data has been collected but the project has been revised species, ecosystems and ecosystem processes contd. Marine Programme: Linefish Project Digital database and framework Partly and deadlines have been shifted. A collaboration with for website developed achieved SANBI’s Knowledge & Information Management has been developed as a corrective measure Database and map of point sources of marine pollution sources Achieved developed and incorporated in NBA marine component report Draft biodiversity sector plans developed for two municipalities in Achieved the grasslands biome Reef Atlas Project for improved protection, sustainable use and Initial work in priority regions provides information of key species, Achieved benefits from reef ecosystems implemented ecosystems and ecosystem processes Proposed offshore Marine Protected Area network identified and priority actions for environmental sustainability in the offshore Achieved environment identified Maps of national freshwater ecosystem priorities, developed Reviews of best available information are used to identify priority through National Freshwater Ecosystem Priority Areas project, led Achieved affected species, ecosystems and ecosystem processes by SANBI Key Result Area 2: Models for integrated biodiversity management Result 2.1 Collaborative cross-sectoral biodiversity programmes dealing with threatened biomes and ecosystems are hosted by SANBI and operating effectively Partly Concept proposals for GEF5 were submitted to DEA. Waiting Proposals submitted for GEF5 under guidance from DEA achieved on DEA’s response before able to take next steps Additional proposals submitted to potential funders Achieved Human capacity established to develop and implement the Not National Municipal Coordinator post frozen due to budget programme achieved constraints. New funding being sought via GEF5 process Proposal submitted to French Development Agency for funding a Achieved feasibility study for municipal reserves Partly Strategy approved by EXCO with minor revisions. Resources SANBI Marine Strategy approved by EXCO and resources secured achieved still to be secured Stakeholder workshop held and report distributed. Will be Partly converted to internal strategic document in first half of the SANBI Freshwater Strategy approved Collaborative biodiversity programmes resourced (funding secured achieved next financial year. Delayed due to absence of programme and staff appointed) leader Grassland Coordination Unit staff contracted and performance Achieved management implemented Fynbos and Succulent Karoo Programme personnel and services Achieved contracts in place CAPE BCSD project Terminal Evaluation undertaken and project Achieved successfully completed Strategic support for the SKEP Programme secured and ongoing programme management functions integrated with those of the Achieved Fynbos Programme All staff recruited and performing according to agreed performance Achieved management plans Collaborative biodiversity programmes resourced (funding secured Procurement, financial management and administration systems Achieved and staff appointed) contd. effective Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 30 Appropriate

National Municipal Biodiversity Programme partnerships established Partly National Municipal Coordinator post frozen due to budget and stakeholder engagement maintained achieved constraints. New funding being sought via GEF5 process

Established links with SAEON and other marine institutes to Achieved maintain SANBI’s Marine Programme

31,470 ha rehabilitated in 87 wetlands Achieved Partnerships established and agreements signed through collaborative biodiversity programmes 1,478 people employed for 162,208 person days, including Employment of 1,303 people for 221,913 person days, including Partly 10,880 training days. Some projects are continuing into April 20,043 training days achieved as a result of rains, which will deliver outstanding person days Signed MOU with at least 10 partners working in the grasslands Achieved biome Effectively functioning Eastern Cape Implementation Committee Achieved maintained and secretariat services provided Plants from appropriate biogeographical areas displayed in NBGs Achieved Reduced infestation by alien invasive plants in all NBGs, but Management and maintenance of plants and associated biodiversity particularly Lowveld, Kirstenbosch, KwaZulu-Natal, Free State, Achieved in landscaped and natural areas of National Botanical Gardens Pretoria and the Walter Sisulu NBGs Walks and trails in each NBG in good condition and safe for use by Achieved visitors Comprehensive inventory of threatened plants in cultivation in Partly Kirstenbosch threatened plant collections reviewed. Data NBGs produced achieved from other NBG collections currently being captured Gardens Conservation Programme established within the Division, using capacity within the MSBP and existing threatened plant programmes within the NBGs, to provide greater coordination and strategic leadership of conservation activities within the Division, Achieved maintain, develop and review strategic partnerships (developing MoUs/MoAs where relevant) and provide a focal point for cross- Cultivation, propagation, display and conservation of threatened cutting conservation initiatives within SANBI plants undertaken 34% of South Africa’s threatened plants in NBG collections and/or Achieved 33% achieved the Millennium Seed Bank (UK) 38% of Critically Endangered South African plant taxa in NBG Achieved 37% achieved collections and/or the Millennium Seed Bank (UK)

70% of Extinct in the Wild South African plants held in NBGs and/or Achieved 85% achieved Millennium Seed Bank (UK)

Gardens plant records (computerised and paper-based) Partly being captured into the new Plant Records Database. Delays Computerised records kept of plant material housed in NBGs achieved due to delayed roll-out (Feb 2011) of new database across Efficient plant recording system established and accurate records NBGs housing cultivated collections maintained for living collections in NBGs Plant Records Database developed for the NBGs that complies with Achieved SANBI’s IT standards and requirements Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 31 Result 2.2 Best practice models for biodiversity management are developed and piloted Develop initiative and implement pilot projects to address the challenge of biodiversity conservation on sites that are identified Achieved for land reform Catalyse and support the development of a national biodiversity Partly Draft framework developed and national meeting held. offsets policy framework achieved Prioritised for next financial year Not Urban connectivity project designed for Cape Flats Discontinued due to budget constraints achieved Support provided to site managers to facilitate stakeholder workshops covering 15 priority biodiversity sites but Capacity developed in integrated management planning among Partly unable to support formal public participation process City of Cape Town nature reserve managers achieved due to budget constraints. Activity discontinued due to institutional realignment Greenfutures feasibility project completed in partnership with Achieved Cape Flats Nature partners Biodiversity Action Plan developed for offshore diamond mining in collaboration with De Beers to identify priority actions for Achieved biodiversity management in the ML3 mining licence area PetroSA Project on the Agulhas Bank builds knowledge to support Achieved biodiversity management in the offshore petroleum industry Two draft biodiversity sector plans developed for Gauteng Achieved (Ekurhuleni and CoJ) Innovative approaches for improved biodiversity management are Partly Delays in the procurement of the PES project coordinator piloted and mainstreamed Activities outlined in logframe are completed achieved resulted in late commencement of these projects Partly Delays in the procurement of the PES project coordinator Implementation of PES projects at two pilot sites initiated achieved resulted in late commencement of these projects Grasslands Programme comments on SUPAR Bill, LandCare Not Engagement begun. Awaiting finalisation of agricultural Turnaround strategy and agriculture extension recovery strategy achieved policy reform available Draft guidelines developed. Delay due to complexity of Partly Grasslands biome ecosystems guidelines developed project, stakeholder consultation and a need for external achieved review. Final version due in the next financial year Three biodiversity friendly farm-based management plans Achieved developed Agroecological zones veld management guidelines developed for Achieved the pilot project 23,000 ha proclaimed under projected environment in Achieved Wakkerstroom/Luneburg Landowner engagement commenced in last financial year, 60,000 ha of biodiversity good management practices Partly farm management plans for implementation developed. implemented achieved Implementation ongoing Delays in formalising agreements with mining companies Not 800 ha secured through wetland mitigation banking offsets beyond SANBI’s control. Corrective measures implemented achieved with steering committee approval Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 32 Appropriate Discontinued due to changes in the priorities of the Draft framework of biodiversity and water commitments for Not coal mining component and the capacity of partner financiers of coal mining achieved organisations Partly Pilot project identified and implementation of guidelines initiated achieved Pilot project initiated but DEA still reviewing guidelines Delays in KZN proclamation process resulted in 2,407 ha 6,000 ha from 11 biodiversity sites are secured and proclaimed Partly proclaimed. Remaining hectares will be secured in the next under NEMPAA achieved financial year Piloting is underway. Lessons learnt document not provided Two small-scale timber growers have piloted the management Partly by service provider. Revised approach to project has been plans and lessons learned are documented achieved implemented The fine-scale planning and biodiversity screening tools are Achieved institutionalised in the forestry sector Application process completed but proclamation delayed Proclamation of stewardship sites in Gauteng under NEMPAA Partly Innovative approaches for improved biodiversity management are achieved due to administrative processes within GDARD piloted and mainstreamed contd. Policies and guidelines developed (including lifestyle estate guidelines, Gauteng biodiversity stewardship strategy, Gauteng Achieved Protected Areas Expansion Strategy) Toolkit designed. Layout and packaging awaiting finalisation Other decision-making tools finalised and packaged into the toolkit Partly achieved of content pending external review Programme completed, and lessons and outcomes of CAPE Achieved Capacity Development Programme captured Institutional Capacity Development strategies completed for CoCT, Achieved ECPB, SANBI and CapeNature PES pilot in Baviaanskloof completed Achieved Sandveld water economics study completed in collaboration with Achieved DoA, DEA & DP and DWA Pilot project to mainstream biodiversity into Municipal IDPs and Achieved SDFs completed Result 2.3 Lessons from biodiversity mainstreaming pilots are synthesised and shared Urban Nature Programme captured and shared lessons in urban Discontinued due to budget constraints. New funding being Not sought via GEF5 process landscapes through developing a case for local government’s role in achieved biodiversity management Completed and launched book documenting Cape Flats Nature project approach: ‘Growing Together: Thinking and Practice of Urban Achieved Nature Conservators’ Knowledge networks are coordinated and lessons captured for Evaluation report approved by steering committee. Evaluation postponed due to reprioritisation of funds Partly improved biodiversity management Outcomes incorporated into programme’s operations and achieved for operations. Discussions underway with WRC and disseminated through learning networks international donors to fund the process Partly Editing underway. Expected print date May 2011 Handbook on Project Fundraising and Marketing published achieved CAPE website content is updated and stakeholder database Achieved maintained CAPE eNews disseminated monthly Achieved Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 33 Partly The scope of work for the handbook changed. The new Lessons learned series published achieved publication will be completed in August 2011 Primer on Mainstreaming Biodiversity completed and launched at Achieved Knowledge networks are coordinated and lessons captured for the COP in Japan and in South Africa improved biodiversity management contd. New SKEP content is uploaded to the new website and the Achieved website is updated and fully functional SKEP e-news bulletins are distributed to stakeholders on a Achieved monthly basis 2011 Biodiversity Planning Forum successfully hosted with Achieved participation lists, programme and outcomes available

Training programme developed Achieved Register and evaluation reports of training events held are Achieved available Not Discontinued as a result of budget constraints due to Partnership activities implemented and output(s) available achieved institutional realignment process Not Discontinued as a result of budget constraints due to Urban Nature workshop proceedings available achieved institutional realignment Not Discontinued as a result of budget constraints due to Proposal and/or plan for learning exchange with Brazil developed achieved institutional realignment Committee for multi-sectoral marine biodiversity forum Achieved established and minutes of meeting available Biodiversity Conservation and Sustainable Development Achieved Celebrating Conservation close out celebration convened Regional conferences in Cederberg and Baviaanskloof convened Achieved Awards winners announced Achieved Knowledge sharing and lesson learning opportunities provided Partly Delayed due to procurement issues. They will be convened Three learning exchanges facilitated achieved from June to September 2011 Facilitation skills developed in 30 participants Achieved

Landscape Initiatives Knowledge Exchange convened Achieved Delays in staff appointments resulted in late delivery. One Three capacity building workshops / learning exchanges held and Partly capacity building workshop convened, the remaining two reports completed achieved will be convened later in 2011 Partly Delayed due to late appointment of Learning Network First five case studies completed achieved Officer. Awaiting final edits before being published Thematic based NamBAF meetings held and full participation of Achieved the members is secured Participation in NamBAF meeting is broadened to include CBOs Achieved and government departments in the economic cluster Municipal capacity development programme conceptualised Conceptualisation initiated. Due to delays in the Partly and action plan developed together with the SANBI Municipal appointment of the Namakwa Coordinator, process to be achieved Programme completed in the next financial year Due to budget constraints some of the planned technical Provision of technical support and training for municipalities with Partly support and training could not be provided. Funding to be regards to biodiversity issues achieved sought via GEF5 process Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 34 Appropriate A set of blog sites that link learning institutes with pockets of Dynamics of blog communications in formal education Knowledge sharing and lesson learning opportunities provided Partly information in SANBI for multi-directional and mulit-media system not fully understood when project designed. contd. achieved communications Amended to establish a single blogsite for SANBI postings Key Result Area 3: Conservation Gardens Result 3.1 Garden expansion strategy is developed aiming to establish one additional garden in an under-represented biome/province Land negotiations completed and proclamation of A National Botanical Gardens Expansion Strategy as required by the new NBG in the Eastern Cape declared by DEA in the Establishment of new NBG in Eastern Cape and Limpopo Partly National Biodiversity Framework (as per Government Gazette No. Government Gazette by end of the next financial year, provinces as per DEA’s Strategic Plan achieved 813 published on 3 August 2009) is developed as per SANBI’s Strategic Plan. Potential sites in Limpopo identified Result 3.2 Profiling of biodiversity issues and SANBI programmes is effected through Garden programmes

Garden based education programmes conducted Reach 29,100 beneficiaries through garden based programmes Achieved

Action projects with FET learners developed and implemented Number of FET action projects implemented Achieved Plan and roll-out of SANBI/BOTSOC FET action projects in Gauteng Project Concept document and Implementation Plan developed Achieved and Mpumalanga Result 3.3 Revenue generating activities in garden are strengthened

Interpretation and provision of relevant services to visitors and Improved interpretative and related signage in NBGs Achieved surrounding communities according to international best practice Interpretation programmes and materials developed according to Achieved conducted international best practice In consultation with the Marketing and Communications Marketing strategies and action plans developed for NBGs (budget Not Resignation of staff member responsible for delivery. Directorate, a marketing plan for each NBG is developed dependent) achieved Consultant to be employed in new financial year Flora (growing in natural areas of the gardens) and fauna checklists A fully integrated interpretation programme within SANBI, with (e.g. mammals, birds, reptiles, amphibians, insects and spiders) for each interpretative staff sharing ideas and experiences, communicating Achieved NBG developed and expanded and made accessible to the public with and supporting one another on a regular basis Close working relationship established between botanical gardens Collaboration between NBGs and local branches of BotSoc Achieved and local branches of the Botanical Society of South Africa Improved management of southern African botanical gardens Achieved Regional and continental botanical garden support provided Improved co-operation between NBGs and other botanical Achieved gardens in southern Africa 5% decrease. No international concerts hosted at Annual increase in income generated from commercial activities Not Kirstenbosch this year. Commercialisation review and associated with the NBGs (overall 3% increase from 2009/10) achieved additional sponsorships expected to increase visitor numbers and income in the next financial year Gardens actively promoted and marketed as local and national Commercial facilities across all NBGs reviewed Achieved tourist destinations Tenants to comply with terms of individual lease agreements Achieved Increased financial support for the NBGs mobilised through Achieved activities and donations sourced from the community Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 35 Key Result Area 4: Policy advice Result 4.1 Biodiversity policy support for DEA is provided

Handover report and final documents Achieved Requests for biodiversity policy support are effectively met BMP-S for Pelargonium sidoides Achieved

Meeting notes available Achieved Support is provided to DEA on key projects and initiatives, on Advice to DEA (and Marine and Coastal Management) provided Achieved request Report and guidelines developed Achieved Input provided on school curricula policy and resource materials in % coverage of biodiversity conservation messages in school Achieved biodiversity curricula and resource materials

Support is provided to DEA and provinces for development and National biodiversity stewardship policy Achieved implementation of biodiversity stewardship related policy and Minutes from biodiversity stewardship technical working group Achieved legislation meetings Implementation of the Biodiversity Act is supported, including support for listing of threatened or protected ecosystems, Norms and standards for Biodiversity Management Plans for Achieved biodiversity management plans for ecosystems, and publication of Ecosystems produced bioregional plans Support is provided to DEA on key projects and initiatives, on Dependent on requests Achieved request Result 4.2 Policy development and decision-making relating to climate change is enhanced by increasing access to appropriate scientific knowledge A Framework for a policy engagement strategy for climate change Recognition that SANBI provides policy advice that is supported Achieved and bio-adaptation research is developed by a strong science basis Engagement in international science-based assessment and policy SANBI CCBA is providing policy advice that is supported by a Achieved development conducted strong science basis 2nd National Communication is being effectively managed and 2nd National Communication to the UNFCCC supported Achieved delivering outputs on schedule Result 4.3 Biodiversity concerns are mainstreamed in the policies of key sectors and across sectors

Green Economy Think Tank meeting notes Achieved SANBI’s role in the emerging areas of payments for ecosystem Reports or notes on relevant learning exchanges, meetings, services and the green economy is explored and clarified Achieved seminars and conferences Result 4.4 Clear messages emerge from SANBI’s work and are appropriately packaged for targeted sectors

CCBA products are visible in the public media Achieved A strategy for climate change communication is developed Requests are received for CCBA inputs relating to communication and guidance on climate change issues at all scales, local, national, Achieved regional, and international Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 36 Appropriate ‘Making the Case’ Strategy developed and implementation initiated to Achieved improve the positioning of biodiversity in decision-making Grasslands Communication Action plan developed, grasslands issues covered in the media, grasslands programme website Achieved updated, 4 annual newsletters and component newsflashes developed Successful WWD event attended by targeted audience Achieved Documentary films made about people, biodiversity and sustainable Materials produced that showcase key messages from SANBI and livelihoods through the Biodiversity Planning and Mainstreaming Achieved Division the biodiversity sector in South Africa Specimens scanned and an electronic key developed but Publications and other information electronically packaged and Partly African Key Project discontinued due to slow progress of prepared for dissemination to end-users achieved international partners SANBI reports on the state of biodiversity through a range of Capacity constraints and delays in some component reports Partly reports, including the National Biodiversity Assessment (previously have led to delay in summary report. Draft National Biodiversity achieved the National Spatial Biodiversity Assessment) Assessment report to be produced by August 2011 Short concept notes and/or policy briefs are produced on key biodiversity issues with links to national development priorities (e.g. Achieved green economy and PES) Result 4.5 Lessons learned from translating science into policy are captured and shared Opportunities taken to promote engagement between SANBI The Science / Policy interface is strengthened through activities and Achieved divisions and policy makers the use of innovative tools Key Result Area 5: Managed Network and Human Capital Development Result 5.1 Structures and processes are in place to enable and support managed network partnerships which contribute to effective implementation of SANBI’s Strategy Collaboration undertaken with the National Research Foundation Comprehensive report on status of collections, risks and on an assessment of zoological collections in South Africa recommendations produced Achieved Eco-schools programme supported through coordination of Number of Eco schools nodes coordinated Achieved Fynbos node Number of strategies developed for the Ecoschools Programme Achieved Expand greening initiatives in schools and communities New Outreach Greening Project in schools implemented Achieved Number of partners identified and capacitated to implement outreach greening projects Achieved Partly Manuals completed but not yet published Number of Greening manuals completed achieved Number of schools greened in Qaukeni Achieved

Greening the Nation Programme in Qaukeni implemented Partly Restructuring and reallocation of projects within DEA and through the greening of the schools, cultural villages and royal Number of cultural villages greened achieved DWAF has resulted in uncertainty regarding responsibility graves for the cultural village. Work commenced halted Restructuring and reallocation of projects within DEA and Number of royal graves greened Not DWAF has resulted in uncertainty regarding responsibility achieved for the royal graves. No work commenced Audit of the project not completed as the project was Completion of audit report Not extended to the end of 2011 due to the cancellation of the achieved contract with the previous implementer Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 37 Result 5.2 SANBI’s capacity to mobilise, synergise and catalyse the biodiversity sector is recognised by funders Participate in career days, Biodiversity and Science Expos and Exhibition stand by ABRD with SAEON Achieved Science Weeks Media (newspaper, journal, radio and TV programme) coverage of Achieved the Launch of the Red List of South African plants Publication on lessons learnt from assessing a mega flora Achieved The work of threatened species programme promoted Education manual on threatened species Achieved Conservation officials able to understand and use Red Lists for Achieved conservation work Proceedings from working group meetings available and strategy Achieved drafted Funding proposals to raise funds to implement the strategy Strategic partnerships with internal and external stakeholders Achieved submitted developed and maintained Proceedings of meetings with HEIs available Achieved

Proceedings of meetings with HEI Forum available Achieved Some mentorship in Nelson Mandela Bay Metro provided Mentorship provided to urban nature project managers and/or Partly but due to budget constraints this KPI could not be fully change agents in cities, bioregional programmes and civil society achieved achieved Training funder (DPW) unable to disburse training funds to Partly Training person days targets met EPWP programmes. 53% of target achieved. Remainder to achieved be completed in September 2011 Registration of courses with DHE and SETA-accreditation of Achieved courses Capacity development initiatives carried out that result in skills Better quality and relevance of training received by EPWP Partly Training funder (DPW) unable to disburse training funds to development beneficiaries achieved EPWP programmes. Contractor development programme in place, including business support development, registration with Construction Industry Achieved Development Board and SEDA Interventions effective in decreasing infection rates among Not measured due to sensitivities associated with testing Unknown beneficiaries and disclosure Fulfilment of requirements as committed to in the Project Achieved Implementation Plan submitted to Working for Wetlands Result 5.3 The contribution of the managed network to human capital development and transformation is strengthened

The National Biodiversity HCD Strategy (BHCDS) development HCD strategy distributed to all key stakeholders (June 2010) Achieved process is coordinated SANBI Lewis Foundation MoUs signed Achieved A leading role is played in the BHCDS implementation: Resource partners in teacher development promote and improve science, A pilot project initiated for an Environmental National Teacher Partly Long-term project initiated in Dec 2010 and to be mathematics, literacy and environmental learning through train- Support Programme achieved completed in March 2012 the-trainers courses and resources Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 38 Appropriate A leading role played in the BHCDS implementation: A database developed of training providers and courses relevant to the Information on courses and training providers produced and Partly Data base of training providers developed. The peer- environmental sector broadly, with a built-in peer review made available to the relevant sectors achieved review system will be built into the BHCD social mechanism networking platform, to be completed in early 2012 A leading role played in the BHCDS implementation: An annual Stakeholders interacted and networked, information exchanged Skills Summit convened for training providers and employers to and future actions and challenges for BHCD brainstormed Achieved interact, for the sector to engage the national funding and skills planning system, and to encourage evaluation, collaboration and BHCDS and other HCD initiatives showcased and input informing Achieved collective action in the biodiversity sector their further development received A leading role played in the BHCDS implementation: Scenario Biodiversity sector planning for future drivers of change and Planning for Biodiversity HCD scenarios which may impact on HCD needs Achieved A leading role played in the BHCDS implementation: Convene, HR managers in biodiversity organisations better able to put in support and resource an Institutional Strengthening/HRD Network place systems to retain talented operational staff and effectively to strengthen biodiversity organisations’ skills planning capacity deploy them. Strengthened retention and effective deployment Achieved convened, supported and resourced of staff in the biodiversity sector PhD project initiated on ecosystem service research to update Not ecosystem services mapping achieved Discontinued as a result of inability to secure funding Analysis for pilot study area performed to ensure suitability for Not PhD achieved Discontinued as a result of inability to secure funding Not Final project proposal submitted with draft results achieved Discontinued as a result of inability to secure funding Expanded internships, studentship programmes, MScs and PhDs PhD student registered at University of Pretoria Not Discontinued as a result of inability to secure funding strengthened and expanded in collaboration with managed achieved network partners where appropriate Quarterly and final evaluation of intern work by supervisors produced and available Achieved Record of meetings and correspondence between student and supervisor maintained Achieved Register and notes from mentoring workshop available Achieved Record of progress reports (biannual) kept; degree certificates In kept by HR progress No degree certificates as yet as students are still studying Structured training programmes are completed by young Training courses run: record of attendees and materials used professionals available Achieved Number of careers’ days and expos held Achieved A programme to promote careers in biodiversity conservation in FET phase coordinated Number of resource materials on biodiversity conservation careers developed Achieved Number of biodiversity conservation awareness initiatives Awareness raised on key biodiversity conservation messages implemented Achieved Number of initiatives implemented to identify new partnerships Partnerships identification and strengthening conducted and strengthen existing ones Achieved Result 5.4 Young South African biodiversity professionals receive training and mentoring Draft complete but as a result of delays in signing contract Field guide being used for data collection and application of Partly with the service provider the field guide will be published NWCS achieved during the next financial year SANBI information resources available through the Biodiversity Advisor Web Portal to users to support research, planning, NWCS being applied and referenced in projects Achieved decision-making, policy and monitoring Use of wetland data at different levels for a range of applications Achieved Summary stats and maps available for all municipalities in South Africa Achieved Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 39 Partly Unable to skill all students due to limited funding. Improved skills amongst South Africa’s horticultural students achieved Additional funding to be sourced in the next financial year Staff from previously disadvantaged groups employed within the Achieved Division, where possible Transformation and staff education, training and development Safe workplaces for staff and visitors Achieved conducted Emergency plans and procedures in place in each NBG and well Achieved known by all staff Unable to maintain all skills requirements due to limited Staffing structure and skills are maintained which are appropriate Partly funding. Additional funding to be sourced in the next to the needs of the Division achieved financial year Number of workshops conducted Achieved Professional development workshops to strengthen Number of biodiversity learning programmes facilitated or implementation of biodiversity programmes facilitated Achieved implemented Result 5.5 SANBI is the recognised one-stop-shop for accessing biodiversity information A Biodiversity Information Management Strategy refined and Effective coordination of Biodiversity Information Management Achieved implemented activities The Biodiversity Information Management directorate is The directorate is functioning optimally with clear understanding Achieved restructured to accommodate the growing functions of respective roles and responsibilities as well as workflow The Biodiversity Information Management Forum is successfully Biodiversity Information Management Forum held Achieved hosted The Biodiversity Advisor web portal is maintained as the premier The Biodiversity Advisor website is maintained with new data on Partly Due to capacity constraints, only some data added source for biodiversity information a quarterly basis achieved Partly Pilot running and will be available to SANBI staff in the Implement a Biodiversity Image Management system The Biodiversity Image Management system is piloted achieved next financial year The Biodiversity Virtual Museums system concept is clarified and Implement a Biodiversity Virtual Museums system Achieved the actual system agreed on All existing biodiversity information management systems are All changes requested have been assessed in terms of the Achieved maintained system’s maintenance plan and logged in the support database Partly DNA Bank templates completed. Project discontinued due Systems analysis methodology has been defined and documented Systems analysis methodology is documented achieved to limited staff capacity Effective software development environment for BIM staff Project documentation, technical tools, resources and Achieved established and maintained management tools available for technical staff Metadata repository for SANBI’s biodiversity information assets is Partly Metadata fields developed but project moved to EIA scope Metadata system developed and used by staff developed to ensure effective accounting achieved Conduct a literature review and best-practice assessment in preparation for developing Enterprise Information Architecture Literature review report completed Achieved Not Project discontinued due to limited staff capacity Enterprise architecture report produced Enterprise architecture report completed achieved Recruit appropriate capacity Achieved Establish steering committee and key contacts to support Achieved PRECIS replacement plan developed contractor Assess existing software options Achieved

Develop draft plan in consultation with BIM and other SANBI staff Achieved Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 40 Appropriate The PRECIS redevelopment framework is in place, but the PRECIS replacement plan developed contd. Finalise PRECIS replacement plan Not replacement plan is still in draft and being reviewed by a achieved recently redeployed staff member Not Trial migration of selected set of users achieved The draft replacement plan is being reviewed Not Related systems modified to support new system achieved The draft replacement plan is being reviewed Not Full migration of PRE users achieved The draft replacement plan is being reviewed PRECIS replacement plan implemented Not Full migration of Cape Town herbarium users achieved The draft replacement plan is being reviewed Not Full migration of KZN Herbarium users achieved The draft replacement plan is being reviewed Not Technical documents drafted achieved The draft replacement plan is being reviewed Project scope and team defined and agreed Achieved

Project requirements and technical specification agreed Achieved

Resource recruited for software development work Achieved

EIA Data Publishing Project designed and implemented to facilitate System built and demonstrated and IAIAsa Achieved the capturing of biodiversity data from EIA project reports System finalised Achieved The system will be presented at the IAIA conference Not in Mexico before it is implemented. The project System roll-out plan for India defined achieved implementation has been delayed due to the difficulty in recruiting the relevant skills. The funder has agreed to a six-month no-cost project extension Not Database no longer required as it has been superceded by Single CREW database with all data is implemented achieved other databases Animal Tissue database is up-to-date Achieved Various SANBI data capturing projects are implemented Garden Accessions system functional at all gardens Achieved

POSA website is up-to-date Achieved Partly Only three of four training courses provided due to server Training on BGIS website usage conducted Organise and deliver one training course per quarter achieved related issues Support database lists all support provided Achieved

All support provided is documented on the support database Achieved Partly Draft created. Redevelopment will include other functions Support for BGIS website usage provided E-News newsletter circulated achieved in the directorate Fora and expos attended and presentations made Achieved

Information about the BGIS website in various media published Achieved

BGIS website server effectively managed Server is operational for 90% of the financial year Achieved Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 41 Research and migrate the BGIS website mapping system to new Partly Server issues have delayed the implementation of many of BGIS website enhancements visible on the website software achieved the enhancements SABIF aims to contribute to sustainable development by facilitating Programme reporting Achieved access to biodiversity and related information on the Internet Promote information sharing on how to engage with the SABIF A call for grant applications published in media and sent via programme and on best practices with submissions on grant Achieved distribution lists applications and managing data The South African Encyclopaedia of Life project is implemented in A SABIF grant is made available to support the development of Achieved conjunction with the Biosystematics division the SAEOL An African wide workshop held on developing the vision and African GBIF participating countries supported in developing an strategy for a coherent African approach to effective management Achieved African strategy for mobilising biodiversity data of biodiversity data SABIF networks are maintained and expanded both nationally and internationally to encourage an understanding of biodiversity Stakeholder engagement in the form of workshops/meetings Achieved information management All progress reports and financial reports completed. Staff managed to ensure the effective implementation of the business Achieved plan SANBI Library services and operations improved and expanded Achieved New library exchange partnership agreements for SANBI Achieved Biodiversity Services Report on monitoring value of existing exchanges compiled Achieved Database of existing exchanges created Achieved Comprehensive, easily accessible information on the biodiversity Annual journal subscriptions centralised with clear processes for Achieved of southern Africa provided, through the library collections and access documented and available services KOHA (open-source Integrated Library System) implemented Partly Process begun, but delayed due to boarding of initiation in both libraries achieved responsible staff member Collaborations with organisations on digitising antiquarian Partly Process begun, but delayed due to boarding of material in SANBI libraries achieved responsible staff member A policy for housing, restoring and maintenance of antiquarian Partly Process begun, but delayed due to boarding of material within SANBI is compiled achieved responsible staff member Information services developed for library users Achieved Titles registered with publishers Achieved Database accessible to all staff Achieved International recognition for SANBI research publications Achieved Manuscripts for SANBI journals and periodicals on research and Adhere to international conventions on research publications Achieved advice processed and prepared Peer-reviewed scientific publications Achieved Partly Database has been developed, but not fully populated Image and archival database developed and maintained Archival biodiversity publications information readily available achieved National and international exposure and a broadening of the Achieved All publications are released and marketed customer base The publications are effectively disseminated Achieved Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 42 Appropriate Result 5.6 Standards, structures, and direction for biodiversity collections, surveys, maps, inventories, and catalogues are provided Collections assessment from 5.1. required to guide this Priority areas for biodiversity collections maintenance and Strategy document produced for comment by various stakeholders; Not document but this not yet released for public comment at expansion identified stakeholder comments documented achieved request of NRF. Budget and capacity constraints additional limitations Three Herbaria fumigated: dated invoices from fumigation Achieved company on file Records of number of specimens and dates of updates maintained Achieved SANBI’s biodiversity collections accessible and available to in a database – available to check stakeholders Numbers of specimens added to collection and date documented Achieved in database – available to check Collections accessible for use by stakeholders Achieved Records of published papers and books kept on file and can be Collections-based research outputs published Achieved checked Key Result Area 6: Effective systems and processes Result 6.1 An enabling environment that attracts and retains biodiversity professionals is created 70% of SANBI employees understand and embrace the value Shared SANBI values developed and shared by employees Achieved system A resourcing strategy is approved resulting in an effective Not Not developed due to financial constraints. Will review in Resourcing strategy developed and approved by March 2011 workforce achieved next financial year Not finalised due to need for alignment to other strategies Not Internal HCD strategy adopted and approved by March 2011 not yet completed. Strategy and related action plans to be Human Capital Development (organisational level) Strategy is achieved developed and programmes initiated adopted in the next financial year 100% of the students successfully completing existing programmes Achieved Although a brief survey was conducted with SANBI Partly Retention Strategy developed Diagnostic analysis of organisation finalised by March 2011 scientists, the strategy was not developed due to financial achieved constraints. Will review in the next financial year The utilisation rate decreased because of minimal EAP utilisation rate increased by 2% at all SANBI centres by March Partly marketing of the EAP due to financial constraints. Will 2011 achieved review in the next financial year 1.5% reduction of absenteeism rate by March 2011 Achieved 16% below target due to lack of incentives to encourage 50% of employees tested on HIV and AIDS and are aware of their Partly staff in some NBGs. Aim to secure incentives in the next status by March 2011 achieved Policies and programmes lead to healthy, safe and productive financial year employees 70% of employees aware and educated about HIV and AIDS by Partly 10% below the target. Programmes will be intensified in March 2011 achieved the next financial year Not No training conducted due to financial constraints. Will be 60% compliance in terms of OHS Act achieved reviewed in the next financial year No sessions conducted due to financial constraints. Partly 100% of employees aware and educated on OHS Act by March 2011 However, the OHS Act has been displayed at all centres. achieved Sessions planned for the next financial year Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 43 Result 6.2 An effective strategy for transformation is implemented The revised Recognition Agreement will be signed by Partly Signed Recognition Agreement by March 2011 achieved SANBI and NEHAWU during the first quarter of the next financial year Good employment relations are achieved throughout the 4% reduction of grievances and disciplinary cases by March 2011 Achieved organisation The employee relations strategy has been developed Employee relations strategy developed and approved by March Partly and will be approved by the SANBI Board during the first 2011 achieved quarter of the next financial year The sustainable transformation action plan has been Transformation action plan developed, approved and developed and is being implemented and will be A Sustainable Transformation programme implemented Partly implemented achieved approved by the SANBI Board during the first quarter of the next financial year 40% of the Employment Equity barriers addressed by March 2011 Achieved Sustainable Employment Equity Transformation carried out Employment Equity Report submitted to the Department of Achieved Labour before 1 October 2010 Result 6.3 A financial strategy that provides a sustainable funding base for SANBI’s existing and expanding activities is effectively implemented SCM policy and Delegation of Authority are in the process Financial and procurement policies developed and implemented 100% compliance with procurement processes Achieved of being approved Timing of cash inflows was slower than cash outflows. Not A positive cash flow achieved Will approach National Treasury for increased funding and improve return on commercial assets Updated signatories Achieved Interest income Achieved Task team established to review policies and presentation made to Achieved EXCO and AC for recommendation to the Board Effectiveness and efficiency of operations Achieved Company’s assets are safeguarded Achieved Compliance with applicable laws, regulations and requirements Achieved

Payments to creditors made on time per contract terms Partly Creditors paid when cash resources allowed Manage financial systems transformation in the organisation achieved Debt collection is done on due dates per contract terms Achieved Professional advice, opinion and guidance given when requested Achieved by management Salary and benefits payments made on last Friday of every month Achieved Important announcements printed in pay advice slips Achieved Purchase order module, fixed assets module fully implemented Achieved and operational Insurance kept up to date Achieved Monitor and control claims Achieved Physical count and tag all fixed assets in order to ensure the Achieved Register is accurate and complete Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual 44 Appropriate Result 6.4 Financial systems are in place and SANBI policies to comply with treasury guidelines and public sector governance requirements respectively Budget Management process conducted Workshops held with all Divisions Achieved Accurate and informative monthly and quarterly reports produced Annual Financial Statements for the organisation compiled Achieved timeously Reports, information and management available when required Annual audit by the Auditor-General successfully completed Achieved by the audit team Quarterly reports Achieved

Unqualified audit report Achieved PFMA and Treasury Regulation compliance report Achieved Risk register updated and presented to the Audit Committee on Achieved quarterly basis Quarterly Compliance reports and register submitted to the Audit Achieved Committee Partly Governance assessment conducted with management Proposals have been solicited in a closed bidding process achieved Risk workshop conducted with management, 20 keys risks Achieved identified, mitigation actions assigned to key staff Result 6.5 Monitoring and evaluation systems are in place to measure progress, capture lessons learnt and thereby improve delivery of SANBI’s mandate Audit Committee approval Achieved Master Information Systems Plan implemented Exco buy in and support Achieved Improved network connectivity and end user experience Achieved Optimisation, upgrade and consolidation of IT systems and Consolidate unnecessary latency issues on the network Achieved processes Remove surplus and ineffective devices Achieved Improved use of office communication tools and services Achieved Office Communication and Collaboration improved through the organisation Improved quality of video conference services and facilities Achieved Reduction in carbon footprint of business Achieved Not Centralised file system achieved Financial constraints. Reprioritised for next financial year Not Centralised business applications achieved Financial constraints. Reprioritised for next financial year Intranet re-development effectively carried out Not Improved access to all images and maps stored centrally achieved Financial constraints. Reprioritised for next financial year Not Document collaboration achieved Financial constraints. Reprioritised for next financial year IT committee needs to be set up to do this in next financial Business input into IT Services Not achieved year IT committee needs to be set up to do this in next financial IT Steering Committee setup and functional Input on all policies, processes, standards and procedures Not achieved year IT committee needs to be set up to do this in next financial Transparency of IT initiatives between business and IT Not achieved year Setup 2nd phase of backup environment Improved backup and recovery time frames Achieved Variance And Corrective Measure Where Intermediate Results Key Performance Indicators Actual Appropriate 45 Building maintenance and capital survey for SANBI completed Achieved Some capital projects completed; some in process; some on Approved building maintenance and capital projects in the various Partly hold due to budget constraints and reprioritised for the next NBGs and centres for 2010/11 completed achieved financial year Completion of new EPWP-funded tourism infrastructure in the Achieved Infrastructural maintenance and development Harold Porter and KwaZulu-Natal NBGs New environmental centre completed and outstanding Facilitate completion of EPWP projects in the Grahamstown Partly wages and other budgets to be allocated for estate Botanical Garden achieved maintenance in the Grahamstown Botanical Garden in the next financial year Maintain levels of security in NBGs consistent with ensuring the protection of staff, visitors and assets Achieved Result 6.6 An effective brand development plan that incorporates a marketing and communications strategy and corporate identity Corporate identity application that is current, creative and meaningful, practical and that all key stakeholders feel part of Achieved A corporate identity that is practical in application and easy to adapt Partly Budget constraints delayed roll out. Will roll out in next Development and roll out of corporate identity to various treatments achieved financial year A corporate identity that communicates the essence of SANBI at a glance Achieved Partly Draft Tourism Strategy to be finalised in the next financial Tourism Development Strategy developed for NBGs achieved year Action plan to respond to recommendations of New strategies developed and existing Gardens policies, Commercialisation Strategy developed for NBGs, based on external Partly consultants’ review of SANBI’s commercial operations achieved commercialisation review will be completed in the next procedures and Business Plans revised financial year Existing policies relevant to division reviewed Achieved Business Plans for the division prepared on an annual basis Achieved Result 6.7 An effective corporate communication strategy is implemented Good coverage of newsworthy stories as evidenced by media SANBI’s leading role in the biodiversity sector highlighted clippings, interviews and opinion pieces Achieved Website updated and functioning effectively Achieved A website that is reflective of the SANBI brand and showcases SANBI’s tourism assets in an interactive and user-friendly way Annual Report produced and approved by Board and delivered to Parliament timeously Achieved Cross-directorate programmes and projects developed within SANBI (e.g. Threatened Species Programme, SANBI website) Achieved Cross-Directorate collaboration and support effectively carried out Improved and more informative interpretative signage in NBGs through collaboration with staff in other core divisions Achieved Internal communication and collaboration effectively carried out Greater co-operation and communication between curators and among curators and horticultural staff horticultural staff within the division Achieved Result 6.8 SANBI’s mandated activities are effectively marketed Staff member responsible for developing garden specific Garden-specific marketing strategies developed and implemented Campaigns and initiatives leveraging around key events organised Partly strategies resigned, but several events organised.- achieved Consultant to be appointed in the next financial year A research-specific marketing strategy is developed to increase the Partly Strategy not complete but research profile raised through uptake of research and raise SANBI’s science profile Marketing strategy complete achieved media support 1.5% decrease in visitor numbers due partly to no international 3% annual increase in visitor numbers in NBGs, particularly where Not concerts at Kirstenbosch and reduced marketing capacity and Improved visitor services in all NBGs result in increased visitor new visitor facilities have been developed achieved numbers investment, due to budgetary constraints Visitor services improved in all NBGs through various initiatives Achieved SANBI Biodiversity for Life 46 Partners Adventure Boot Camp Dullstroom Environmental Forum KwaZulu-Natal Department of Conservation, Environment and Rural SSC Species Survival Commission of Agricultural Research Council Durban Botanic Gardens Agriculture and Environmental Affairs Development the IUCN Animal Demography Unit Eastern Cape Department of Economic Kyknet North West Department of Agriculture, Table Mountain Cableway AsgiSA-Eastern Cape Development and Environmental KZN Department of Agriculture, Conservation, Environment and Rural Table Mountain Fund Association for the Taxonomic Study of Affairs Environment and Rural Development Development The Biodiversity Support Group the Flora of Tropical Africa Eastern Cape Parks Lepidopterists’ Society of Africa Northern Cape Department of The Eastern Association for Water and Rural Ekurhuleni Municipality Lettie Fouché School Environment and Nature Conservation The Global Invasive Species Programme Development Endangered Wildlife Trust Lewis Foundation Novartis The Lowvelder Athletics South Africa Environmental Monitoring Group Ligwalagwala FM Oceanographic Research Institute The Rekord Beeld eThekwini Municipality Limpopo Business Support Agency Old Mutual TRAFFIC Biosafety South Africa Ezemvelo KwaZulu-Natal Wildlife Limpopo Department of Agriculture Overstrand Conservation Foundation Transnet Birdlife SA Faerie Glen Nature Reserve Limpopo Department of Economic Overstrand Municipality Tshwane Municipality Botanic Gardens Conservation Featherbrooke Estate Development, Environment and Pioneer School for the Blind Tshwane University of Technology International Forestry South Africa Tourism Pretoria Bonsai Kai Two Oceans Aquarium Botanical Artists’ Association of Frank Joubert Art Centre Lions Club International Protea School, Nieuwoudtville Umjindi Environmental Forum Southern Africa Free State Department of Agriculture Mangaung Municipality Rand Orienteering Club UN Food and Agriculture Organisation Botanical Society of South Africa Free State Department of Economic Marloth Nature Conservancy Rand Water University of Cape Town Cape Horticultural Society Development, Tourism and Mbombela Environmental Management Rhenosterspruit Nature Conservancy University of Fort Hare Cape Peninsula University of Environmental Affairs Forum Riverside Park Precinct Association University of Johannesburg Technology Free State Department of Tourism, Mbombela Municipality Rowland & Leta Hill Trust University of KwaZulu-Natal Cape Tourist Guides Association Environmental and Economic Affairs Med FM 104.1 Royal Botanic Gardens, Kew University of Limpopo Cape Town Big 6 Garden World Millennium Seed Bank Project SAPPI University of North West CapeNature Gauteng and Northern Regions Bat Mondi Wetlands Programme Sasol University of Pretoria CapeTalk Interest Group Mountain Club of South Africa Silverstar Casino University of South Africa Centre for Invasion Biology Gauteng Department of Agriculture MPower FM Silverton Community Policing Forum University of Stellenbosch City of Cape Town and Rural Development Mpumalanga Herpetological Society Small Enterprise Development Agency University of the Free State City of Johannesburg Gauteng Enterprise Propeller Mpumalanga Plant Specialist Group Social Transformation and Development University of the Western Cape City of Tshwane GENOK (Norway) Mpumalanga Tourism and Parks Agency Projects University of the Witwatersrand Conservation International Glen College of Agriculture Msunduzi Municipality South African Environmental University of Venda Constantia Vineyards Global Partnership for Plant Namaqualand Tourism Observatory Network V&A Waterfront Council for Scientific and Industrial Conservation Natal Museum South African Institute for Aquatic Valley FM Research Guide Dog Association National Council for the Blind Biodiversity Water Research Commission Darling Wildflower Society Hans Hoheisen Charitable Trust National Institute for Crime Prevention South African Museums Waterberg Nature Conservancy Department of Agriculture, Forestry Herpetological Association of Africa and the Reintegration of Offenders South African National Parks (SANParks) Western Cape Department of and Fisheries Human Sciences Research Council National Institute for the Deaf South African National Roads Agency Agriculture: Worcester Veld Reserve Department of Co-operative Indigo Development and Change National Museum Limited Western Cape Department of Governance and Traditional Affairs International Diplomatic Spouses National Research Foundation South African Nursery Association Environmental Affairs and Department of Environmental Affairs Association National Zoological Gardens South African Police Service Development Planning Department of Labour Iziko South African Museum NEHAWU South African Tourism Wilderness Foundation Department of Public Works Jakaranda Lions Club Nelson Mandela Bay Municipality South African Weather Service Wildlife and Environment Society of Department of Rural Development and Kfm 94.5 Neutrog Fertilisers South African-Norway Biosafety South Africa Land Affairs Klein Kariba Private Nature Reserve Nieuwoudtville Eco Club Cooperation Working for Water Department of Water Affairs Kleinmond Tourism Bureau Nieuwoudtville Fire Prevention Southern African Bird Atlas Project 2 World Conservation Union Development Bank of South Africa Kogelberg Biosphere Reserve Committee Southern African Society for World Wide Fund for Nature – South Die Burger Komati Forests Nieuwoudtville Publicity Association Co-operative Education Africa Drum Beat Academy Kroonstad Municipality North West Department of Agriculture, Spider Club of Southern Africa World Wildlife Fund – South Africa Donors 47 BIOPAT e.V. HR Hill Trust BOE Trust Ltd Kogelberg Biosphere Reserve Botanical Education Trust Company Botanical Society of South Africa National Research Foundation Camellia Society Netherlands Centre for Council for Scientific and Biodiversity Naturalis Industrial Research Norvatis Critical Ecosystems Partnership Norwegian Government via Fund via Conservation Department of Environmental International Affairs Department of Environmental Old Mutual Affairs Open University Department of Water Affairs Rand Water Distell SA Gold Coin Exchange Dr Sunshine SANParks Duncan MacFadyen SAPPI Eastern Cape Parks Board South African Environmental European Commission via Observation Network Universidad Castilla La Mancha Table Mountain Fund European Distributed Institute for United Nations Development Taxonomy (EDIT) Programme Environmental Wildlife Trust United Nations Environment Fitzroy Trust Programme Food and Agricultural United Nations Office for Project Organisation Services Gauteng Department of Western Cape Provincial Agriculture Conservation and Government Environment World Bank (International Bank German Development for Reconstruction and Cooperation (GTZ) Development) Global Biodiversity Information World Resources Institute Facility World Wide Fund for Nature 48 Branches, divisions and directorates

SANBI is structured into two branches, with divisions and directorates: The Biodiversity Research and Knowledge Management Branch includes: 1. Biodiversity Research, whose broad scope of research includes the origins, composition and functioning of biodiversity, its conservation and sustainable use, ecosystem services, and biodiversity responses to major drivers such as climate change. Our research is organised into three divisions: • Applied Biodiversity Research conducts research into the conservation and sustainable use of biodiversity and the contribution of biodiversity to sustainable development. • Biosystematics Research and Biodiversity Collections is responsible for leading and co-ordinating taxonomic and systematics research on southern Africa’s biodiversity. • Climate Change and Bio-adaptation leads and co-ordinates research and communication regarding South Africa’s response to the bio-impacts of climate change and explores issues relating to bio-adaptation. 2. Biodiversity Knowledge, Policy and Network Management is responsible for providing access to biodiversity information, developing policy, working with partners, providing education on biodiversity and building human capacity within the biodiversity sector. Our knowledge, policy and network management work is organised in one division and three directorates: • The Biodiversity Mainstreaming and Planning division responds to biodiversity- related global policy and national priorities and demonstrates the value of conserving biodiversity and the relevance of biodiversity to the improvement of the quality of life of all South Africans. • The three directorates in this branch are: the Biodiversity Information Management Directorate, the Biodiversity Education and Empowerment Directorate and the Biodiversity Policy Management Directorate. The Conservation Estate Management and Corporate Services Branch includes: • Conservation Gardens and Tourism division, which manages the nine National Botanical Gardens in six provinces and promotes visits to the Gardens. • The Human Resources division, which manages the employment of SANBI’s 692 employees.

• The Marketing and Communications Directorate and the Information Technology Directorate also fall under this branch. SANBI Organogram 49 Biodiversity for Life

MINISTER OF WATER & ENVIRONMENTAL AFFAIRS

BOARD CHAIRPERSON

Chief Executive Officer Chief Financial Officer

CONSERVATION ESTATE BIODIVERSITY RESEARCH AND KNOWLEDGE MANAGEMENT MANAGEMENT AND

BRANCHES CORPORATE SERVICES

CLIMATE BIO- CONSERVATION HUMAN CHANGE APPLIED BIODIVERSITY HUMAN SYSTEMATICS GARDENS RESOURCES AND BIODIVERSITY MAINSTREAMING CAPITAL AND AND AND

DIVISIONS BIO- RESEARCH AND PLANNING DEVELOPMENT COLLECTIONS TOURISM TRAINING ADAPTATION Programme

DIRECTORATES Climate Change Climate Marketing and Marketing Communications Biodiversity Policy Biodiversity Fynbos Programme Fynbos Zoology Systematics Zoology Grasslands Programme Freshwater Programme Freshwater Information Technology Information Co-ordination and Policy Information Management Information Education & Empowerment Education Biodiversity Biodiversity Main ­ streaming Managed Network Research Managed Network Succulent Karoo SANBI Biodiversity for Life 50 Financial Information SANBI is committed to delivering service and operational excellence that adds value to the fiscal grants received from government and our donors and sponsors. As in previous years, SANBI has complied with the regulatory framework provided by the Department of Environmental Affairs and National Treasury.

STATEMENT OF RESPONSIBILITY OF THE BOARD The South African National Biodiversity Institute (SANBI) was established in terms of the National Environmental Management: Biodiversity Act of 2004 (No. 10 of 2004) and is subject to the provisions of the PFMA 1999.

The members of the SANBI Board are responsible for the presentation of Annual Financial Statements in compliance with generally recognised accounting practices, the maintenance of accounting records, internal control and risk management, and the consistent use of appropriate accounting policies supported by reasonable judgements and estimates.

The Board believes that the Institute is a going concern for the foreseeable future.

The Annual Financial Statements for the year ended 31 March 2011 were approved by the Board on 27 May 2011 and are signed on its behalf by:

Mr Thamsanqa Sokutu Dr. Tanya Abrahamse Chairperson of the SANBI Board Chief Executive Officer REPORT OF THE ACCOUNTING AUTHORITY 51 to the Executive Authority and Parliament of the Republic of South Africa

Preparation and Presentation of the Annual Financial Statements Admission fees, which are the most significant commercial aspect of SANBI’s income generation, contributed only 8% of total income. The other commercial income stream is The South African National Biodiversity Institute (SANBI) has adopted the South African Rent received from restaurant concessionaires. Rent income (2% of total income) increased Statements of Generally Recognised Accounting Practices as set out in the accounting by 4% from the previous financial year. policy – note 1 to the financial startements. The financial position and results of the business and activities of SANBI are reflected in the Income from investments increased by 35% to R3.7m as a result of higher interest rates attached financial statements. No material fact or circumstance has occurred between the earned from well-selected investment instruments with our commercial bank. This was accounting date and date of this report. achieved despite the year-on-year decrease in overall cash balances from R62m to R25m. Highlights from the statement of financial results Other Income consists of professional services rendered, guided tours conducted, The financial position of the business and activities of SANBI is clearly indicated in the commissions, and seminars and workshops hosted. The decrease of 9.4% is mainly attached financial statements. No material fact or circumstance has occurred between the attributable to fewer professional services rendered, and fewer seminars and workshops, accounting date and date of this report. among other less performing income streams. SANBI continues to perform well despite certain challenges, as is described in the Expenses Performance Information section of this Annual Report. Following the implementation of stringent cost-cutting measures, total expenses increased SANBI posted a net deficit of R2.27m compared to the previous year where the net marginally by 3% on the previous year. The costs savings were realised in Internal audit fees deficit including non-cash items was R10.8m. In general Other Grants, Sponsorships (58%), Finance costs (79%), Depreciation (16%) and Direct project expenditure (10%). and Donations increased marginally by 6%. As reflected in Note 15, the only category of The table below shows the main cost drivers: Sponsorship where income increased significantly (19%) is Corporate. The other categories of Sponsorships decreased compared to the last financial year. The Cost Element % of Total Expenses % Increase Year-on-Year decreases are listed below: • Government sponsored projects 7% Personnel costs - MTEF 42% 12.5% • Foreign 77% Personnel costs - Projects 7% 14% • Individuals and organisations 11% • Trusts 4% Operating expenses 24% 6% • Other (e.g. benches) 5% Audit fees: External audit 0.4% 18% The Government Grant, which constitutes 46% of SANBI’s overall income, increased by 7% compared to the previous year. Other Grants, Sponsorship and Donations listed above constitute 41% of total income. This reflects SANBI’s continued dependence on Sponsorships to fulfil a large part of its mandate. 52 Highlights from the statement of financial position Services rendered by SANBI The services that are rendered by SANBI are discussed in detail under Key Performance Indicators and the Programme Information sections of this Annual Report. These sections Cash and cash equivalents also contain detailed information on SANBI’s projects. 85% Corporate governance arrangements The Corporate Governance Statement in this Annual Report contains details of these arrangements. Trade and other Performance information receivables 12% Performance targets are set on an annual basis as required by National Treasury. Quarterly performance reports are prepared by SANBI and submitted to National Treasury through the Executive Authority. These reports reflect achievements during the various reporting periods. Throughout, results obtained are assessed against targets set. Address Biological assets Consumables 2% 1% Registered office: South African National Biodiversity Institute 2 Cussonia Avenue, Brummeria, Pretoria 0002 Within current assets the cash and cash equivalents component declined by 60% from R62m to R25m. Private Bag X101, Pretoria, 0001 Cash constitutes 85% of all current assets (11% of total assets) and is important in terms of liquidity for the organisation’s operations. Auditors Trade and other receivables constitute 12% of current assets (2% of total assets). This is less liquid than The South African National Biodiversity Institute, as a Public Entity, is audited by the cash as it takes time to convert into cash due to credit terms and possible defaults by debtors, which Auditor-General. are subject to debt collection processes. Approval Property plant and equipment and investment properties makes up 86% of total assets. These are The Annual Financial Statements set out on pages 60 to 103 have been approved by the long-term in nature and cannot be quickly or easily converted into cash. Accounting Authority. LIABILITIES Post balance sheet event Retirement benefit Projects Fund: On 26 July 2011 management uncovered the misappropriation of project funds by an obligation Unspent official. In terms of section 86 of the PFMA, criminal charges have been laid and the 33% commitments 30% incidence was reported to the relevant authorities. Management has commissioned a forensic investigation into the matter.

Trade and other payables 37%

Mr Thamsanqa Sokutu Current liabilities are made up of short-term commitments to Unspent Projects Funds as well as Trade Chairperson of the SANBI Board and Other Payables. Retirement benefit obligations are generally long-term in nature. Date: 29 July 2011 CORPORATE GOVERNANCE STATEMENT 53

GOVERNANCE STRUCTURE Role of the Board The South African National Biodiversity Institute subscribes to and is committed to complying The Board shall as soon as practically possible after the end of each financial year, submit: with the principles and standards of integrity and accountability expressed in the Public • An annual report for the Minister’s approval and tabling in Parliament, and Finance Management Act, relevant Treasury Regulations and the King III Report on Corporate • Any other matter that the Minister may request the Board to deal with. Governance. The Board is furthermore committed to providing timeous and meaningful The effective functioning of the Board is largely dependent on the preparation, for its information on all of its activities. consideration, of the Institute’s Corporate Strategic Plan, its annual Business Plan, policy Composition of the Board proposals, Medium Term Expenditure Framework (MTEF) and other such documents that require the Board’s approval. Members of the SANBI Board are appointed in terms of Section 15 of the National Environmental Management Biodiversity Act, 10 of 2004. All Board members are subject to and accept the provisions of the Biodiversity Act and the PFMA in terms of responsibility and accountability. The Board consists of not fewer than seven and not more than nine members who are appointed by the Minister of Water and Environmental Affairs. The Board further includes the Executive Management Committee: Composition and role Director-General, or an official of the Department of Environmental Affairs designated by the The Executive Management Committee comprises the Chief Executive Officer (as Director-General, and the Chief Executive Officer of the Institute. The Minister must appoint a Chairperson), Heads of Branches, Chief Financial Officer, Chief Directors, and Director: Finance member of the Board as Chairperson. Board members are appointed for a term of three years. and Unit Heads of the functional areas of the Institute. This Committee meets monthly or The Board has adopted formal terms of reference regulating its functions. The Board fulfils more frequently if necessary. The role of the Committee is to ensure the co-ordinated and the same function as the Board of Directors of any other organisation on behalf of its efficient execution of all functions delegated to it by the Board, in particular to ensure that its stakeholders, with responsibility and accountability for all decisions of the Institute. The decisions, strategies and objectives are implemented. The Executive Management retains full Board meets quarterly and monitors the executive management by ensuring that all material and executive control over the Institute. matters are subject to Board approval. Other members of the executive management attend Board meetings by invitation. Audit Committee: Composition and role In keeping with Treasury Regulation 27 of the PFMA, the Board appoints an Audit Committee Members of the Board during the period 1 April 2010 to 31 March 2011 to assist with the discharge of its duties by reviewing and reporting on the governance Mr T. Sokutu (Chairperson) Ms K. Montgomery (until 30 November 2010) responsibilities of the Board and the Institute. Prof. P. Omara-Ojungu Ms T. Dingaan The terms of reference of the Audit Committee, its duties and functions, its composition and its modus operandi have been approved by the Board. The committee meets four times per year. Dr P. Hanekom Dr T. Abrahamse (Chief Executive Officer) Mr A. Frost Mr S. Somyo Members of the Audit Committee for the period 1 April 2010 to 31 March 2011 Mr F. Mketeni Ms M. Pyoos Dr P.E. Hanekom Chairperson Ms M. Pyoos Member Roles of the Board and Chief Executive Officer Mr G.J. Dladla Independent member The roles of the Chairperson and Chief Executive Officer do not vest in the same person and Mr T. Bouwer Independent member the Chairperson is a non-executive member of the organisation. The Chairperson and Chief Dr T. Abrahamse ex officio Executive Officer provide leadership and guidance to the Board. All advisory committees of the Board are chaired by non-executive members of the Board. Ms. E. Makau ex officio Mr M. Khoahli (Chief Financial Officer) ex officio 54 Board Sub-Committees: Composition and roles These officers are actively involved in the budget development cycle and must assume For operational effectiveness, the Board has instituted Sub-Committees for each of the responsibility for the disciplined management of their cost centre budgets within clearly functional areas of the Institute. These Sub-Committees comprise one or more members defined policies, procedures and delegations of authority. of the Board and several additional members who are recognised leaders in the functional GOVERNANCE PRINCIPLES areas. Members are appointed for a term concurrent with that of the Board. Any Board Framework member may request or be requested to attend a Board Sub-Committee meeting. Corporate Governance is a system by which organisations are directed and controlled. The role of the Sub-Committees is to advise the Board on: Basically it is a set of checks and balances that gives assurance to stakeholders that the 1. The mandate given to the Institute by Parliament. organisation is run according to sound corporate governance standards and principles. 2. The strategic direction and emphasis of the Institute. These standards and principles are based on international best practice. 3. The efficient implementation of those facets of the Corporate Strategic Plan that are relevant to the functional area. The Institute’s Board, its Sub-Committees and the Executive Committee believe that the 4. The evaluation of individual activities, personnel, budgeting requirements and the Institute has complied with these principles. initiation of new activities or the termination of existing activities. Financial Statements 5. Budget and infrastructure needs. The Institute’s Board and Executive Committee confirm that proper records were kept 6. Service to the community. and that they fairly represent the financial state of affairs of the Institute. The Financial Committee 1 April 2010 – 31 March 2011 Statements are prepared in accordance with Generally Recognised Accounting Practice Governance and Strategy Committee Mr. A. Frost (Chairperson) (GRAP) and other relevant accounting standards. Mr. S. Somyo External auditing is conducted by the Auditor-General. Ms. K. Montgomery (until 30 November 2010) Risk Management Dr. T. Abrahamse Effective risk management is integral to the Institute’s objective of consistently adding Remuneration & Human Resource Ms. T. Dingaan (Chairperson) value to the business. Management is continuously developing and enhancing its risk Committee Mr. A. Frost and control procedures to improve the mechanisms for identifying and monitoring risks. Dr. T. Abrahamse ex officio Risk assessments are conducted on a regular basis and a risk management strategy, which Mr. M. Netshiombo ex officio includes a fraud prevention plan, is used to direct the internal audit effort and priority. Research Innovation and Development Ms. M. Pyoos (Chairperson) Committee Prof. P. Omara-Ojungu (Member) Key policies and procedures that are in place to manage operating risks include segregation Prof. S. Chown (Independent member) of duties, transaction authorisation, supervision, monitoring and financial and managerial Mr. D. Naidoo (Independent member) reporting. Where the risk management workshop has identified weaknesses in the systems Dr. T. Abrahamse ex officio of the Institute, they have been addressed. Ms. C. Mbizvo ex officio The Institute has an active Risk Management and Fraud Prevention Committee, which meets regularly and effectively deals with matters pertaining to its Terms of Reference. The Chief Management Structure of the Institute Financial Officer chairs this committee. The Institute has adopted a Fraud Prevention Policy The management structure of the Institute is geographically decentralised because of the and Plan, which incorporates a whistle blowing system and procedure. The South African wide geographical spread and activities of its various units. The head of each unit is called a Corporate Fraud Management Institute (SACFMI) administers the whistle blowing hotline. ‘Head of Cost Centre’. Grievances, complaints and other hotline disclosures are effectively assessed in terms of Implicit in the concept is a substantial measure of delegation of both responsibility and warranting further investigation (forensic or other) and the necessary steps are taken to authority, which in turn requires effective control and evaluation systems. Both financial ensure that fraudulent and corruptive misdemeanours are adequately addressed and that and management responsibilities are delegated and clearly communicated to the Head. stolen assets are recovered. 55 The insurance and risk management policies adopted are aimed at obtaining sufficient cover Transformation to protect the Institute’s asset base, its earning capacity and its legal obligations against In its quest to create a transformed working environment that will attract, develop and retain possible insurable losses. biodiversity professionals, SANBI, with the assistance of the Technical Assistance Unit (TAU) All buildings are insured. The following, inter alia, are not insured: roads, bridges, fencing of the National Treasury, launched a sustainable transformation programme towards the (perimeter and other), dam walls and content, driveways, pavements, outdoor recreation end of 2009. The programme has five phases, three of which have been duly completed. surfaces, outdoor parking surfaces, animals and plants of whatever nature as well as laptops. The completed phases are: Preparing for change (organisation audit/culture/climate survey), Aligning for change (developing vision for change) and Planning for change (developing Internal Control Systems an action plan). The outstanding phases are: Implementing and Monitoring change and To meet its responsibility with respect to providing reliable financial information, the Institutionalizing change. These phases will be finalised within a reasonable time. Institute effectively maintains financial and operational systems of internal control. These controls are designed to provide reasonable assurance that transactions are concluded in Employment Equity accordance with management authority, that assets are protected against material loss or SANBI has an Employment Equity and Training Committee that facilitates and supports the unauthorised acquisition, use or disposal, and those transactions are properly authorised transformation programme in the Institute. The Employment Equity Policy of the Institute and recorded. seeks to: The system includes a documented organisational structure and division of responsibility, • Successfully execute the employment equity strategy and attain specific employment established policies and procedures and the careful selection, training and development of equity targets people. • Ensure compliance with the provisions and legal requirements of the Employment Equity Act Internal auditors monitor the operation of the internal control system and report findings • Promote diversity and recommendations to Management and Executive Management. Corrective actions are • Modify and adjust physical working environments to accommodate disabled people taken to address and control deficiencies and other opportunities for improving the systems, • Attract, develop and retain staff members that are representative of designated groups. as they are identified. The Board, operating through its Audit Committee, provides oversight of the financial reporting process and internal control systems. In order to achieve its Employment Equity Vision, SANBI commits itself to: The Institute has a comprehensive network of compliance officers who submit quarterly • Implement all the critical success factors for effective Employment Equity transformation reports on cost centre/project compliance in terms of recommendations made by the • Make available all necessary personnel and financial resources • Involve, consult and communicate with all employees, either directly or indirectly, internal auditors. All compliance officers and all other SANBI staff members have a duty to through SANBI structures ensure that controls and systems are put in place to prevent or mitigate possible risks from • Ensure that the enabling systems and environment are in place and maximise the materialising. advancement of persons from designate groups. The accounting policies and procedures have been presented and approved by the Board. All other operational policies have been revised, edited and approved by the Board or the Integrated Employee Health and Wellness Programme Executive Committee during this financial year. SANBI has adopted a holistic integrated Employee Health and Wellness Model with the The Institute has an effective loss management system, processes and procedures where following four pillars: all losses and damages are duly reported and entered in a Loss Control Register and • HIV/AIDS and Tuberculosis Management appropriately and adequately adjudicated by the Liability Assessment Committee. Liability In response to HIV and AIDS, SANBI is guided by the National Strategic Plan of 2007–2010 for these losses and damages (due to accidents caused by human error such as negligence, on HIV & AIDS and Sexually Transmitted Infections, which focuses on prevention, recklessness and carelessness) is apportioned and disciplinary procedures are instituted treatment, care and support, research, monitoring and surveillance, human rights and where necessary. Recovery of assets is done where possible and assets are duly written off access to justice. SANBI recognises the problem to public health posed by TB and ensures according to the relevant regulations and policies in this regard. that employees with TB have access to an appropriate treatment and support system. 56 • Health and Productivity Management Delegation of Authority Health and Productivity management in the workplace is defined as: ‘the integrated The Board approved the Delegations of Authority for effective operational purposes. These management of health risks for chronic illnesses, occupational injuries and diseases, are contained in the Finance and Accounting: Policies, Procedures and Delegations Manual. mental diseases and disability in order to reduce employees’ total health-related costs, Supply Chain Management including direct medical expenditure, unnecessary absence from work and loss of performance at work.’ SANBI promotes and maintains the general health of employees The Institute has aligned all procurement systems, policies, processes and practices with through prevention, intervention, awareness, education, risk assessment and support PFMA and Treasury requirements concerning Supply Chain Management. SANBI complied in order to mitigate the impact and effect of communicable and non-communicable with the reporting requirements of the Department of Environmental Affairs and National diseases and injuries on the productivity and quality of life of individual employees. Treasury by regularly reporting on the supply chain management system, processes, policy and procedures. • Safety, Health, Environment, Risk, Quality Management (SHERQ) SANBI will implement SHERQ in accordance with the standards identified by the Conflict of Interest International Organisation of Standards, OHSAS 18001 for OHS, ISO 14001 for As part of the appointment protocol, all new staff members of the Institute are obliged to Environmental Management, and ISO 9001 for Quality Management. complete a ‘Declaration on Conflict of Interest’ when they are appointed. • Wellness Management All Board members are, in keeping with the PFMA, required to complete a ‘Disclosure of SANBI addresses individual and organisational wellness in a proactive manner. Individual Interest’ declaration, annually and at every Board and Sub-Committee meeting as part of the Wellness is the promotion of the physical, social, emotional, spiritual and intellectual attendance register. wellness of individuals. This is attained by creating an organisational climate and culture LEGISLATIVE FRAMEWORK that is conducive to wellness and the comprehensive identification of psycho-social The Institute, being a Section 3A Public Entity, has to comply with a number of laws, including: health risks. Wellness management is a priority as the health, safety and wellness of • National Environmental Management: Biodiversity Act No. 10 of 2004 employees directly impact on the entire Institute. • Labour Relations Act No. 66 of 1995 Employee Participation • Basic Conditions of Employment Act No. 75 of 1997 Employee participation is encouraged by putting best practices in place to foster good • Employment Equity Act No. 55 of 1998 and co-operative relationships and employee participation at all levels of the organisation. • Skills Development Act No. 97 of 1998 Union representation, staff meetings, focus groups and task teams and surveys are all • Public Service Act No. 103 of 1994 (together with its regulations) – subject to ministerial instrumental in facilitating participation. In 2010, SANBI had a very successful Relationship approval Building Exercise with NEHAWU. • Decisions reached at the Central Bargaining Chamber – subject to ministerial approval • Public Finance Management Act No. 1 of 1999 (PMFA) Code of Conduct • Occupational Health and Safety Act No. 85 of 1993 A Code of Conduct has been developed for all staff of the Institute. The Code has been • Generally Recognised Accounting Practice (GRAP) translated into the various languages predominantly spoken by staff. All staff were • Compensation for Occupational Injuries and Diseases Act No. 180 of 1993 consulted and given the opportunity to make comments and recommendations on the • Promotion of Access to Information Act No. 2 of 2000. Code. The Code of Conduct facilitates sound business ethics in the Institute and plays an important role in defining the organisational culture and in governing effective discipline within the Institute. It is a standard annexure to all letters of appointment to ensure that new staff are adequately informed.

A Code of Conduct for Board members has also been developed, approved and Dr. Tanya Abrahamse implemented and all Board members are subject to these prescripts. Chief Executive Officer REPORT OF THE AUDIT COMMITTEE 57

We are pleased to present our report for the financial year ended 31 March 2011. Governance, the Internal Audit Function and other assurance providers, provided 1. Audit Committee Members and Attendance the Audit Committee and management with assurance that the internal controls are appropriate and effective for those areas included in the annual operational plan. This The Audit Committee consisted of four external members listed hereunder and held is achieved by means of the risk management process, as well as the identification of eight meetings for the financial year under review: corrective actions and suggested enhancements to the controls and processes. The Membership of the Audit Committee from 1 April 2010 to 31 March 2011 comprised: Audit Committee has evaluated the work performed by the Internal Audit Function and other assurance service providers. Based upon this evaluation, the Committee reports Name of Member Number of Meetings Attended that the systems of internal controls for the period under review were effective and Dr P.E. Hanekom (Chairperson) 8 efficient. Dr T. Abrahamse (ex officio and Board Member) 7 4. Evaluation of Financial Statements Ms M. Pyoos (Board Member) 5 The Audit Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer and entity during the year under Mr G.J. Dladla (Non Board Member) 4 review. Mr T. Bouwer (Non Board Member) 8 5. The Audit Committee has: Mr M. Khoahli (ex officio) 8 a. Reviewed and discussed the audited annual financial statements to be included in Ms. E Makau (ex officio) 3 the annual report with the Auditor-General and the Accounting Officer; b. Reviewed the Auditor-General’s management letter and management’s response 2. Audit Committee Responsibility thereto; The Audit Committee reports that it has complied with its responsibilities arising from c. Reviewed accounting policies; and section 51(1)(a) of the PFMA and Treasury Regulation 27.1. The Audit Committee d. Reviewed significant adjustments resulting from the audit. has adopted appropriate formal Terms of Reference as its Audit Committee Charter, The Audit Committee concurs and accepts the Auditor-General’s conclusions on the has regulated its affairs in compliance with this Charter and has discharged all its annual financial statements and is of the opinion that the audited annual financial responsibilities as contained therein. statements be accepted and read together with the report of the Auditor-General. 3. The effectiveness of internal control

The system of internal controls is designed to provide cost effective assurance that assets are safeguarded and that liabilities and working capital are efficiently managed. The Audit Committee has evaluated all significant and material issues raised in reports issued by the Internal Audit Function, the Audit Report on the Annual Financial Statements, and management letter of the Auditor-General, and is satisfied that they have all been, or are Dr Patricia Hanekom being, appropriately resolved. In line with the PFMA and the King III Report on Corporate Chairperson: Audit Committee Date: 21 July 2011 58 REPORT OF THE AUDITOR-GENERAL to Parliament on the South African National Biodiversity Institute

REPORT ON THE FINANCIAL STATEMENTS Introduction Opinion 1. I have audited the accompanying financial statements of the South African National 7. In my opinion, the financial statements present fairly, in all material respects, the financial Biodiversity Institute (SANBI), which comprise the statement of financial position as at position of SANBI as at 31 March 2011, and its financial performance and its cash flows for the 31 March 2011, and the statement of financial performance, statement of changes in year then ended, in accordance with SA Standards of GRAP and in the manner required by net assets and cash flow statement for the year then ended, and summary of significant the PFMA. accounting policies and other explanatory information, as set out on pages 60 to 103. Emphasis of matters Accounting authority’s responsibility for the financial statements 8. I draw attention to the matters below. My opinion is not modified in respect of these 2. The accounting authority is responsible for the preparation and fair presentation of these matters: financial statements in accordance with South African Standards of Generally Recognised Financial sustainability Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the National 9. Although SANBI has prepared financial statements on a going concern basis, I have identified Environmental Management: Biodiversity Act of South Africa, 2004 (Act No. 1 of 2004) and for events or conditions which, individually or collectively, cast significant doubt on SANBI’s such internal control as management determines necessary to enable the preparation of the ability to continue as a going concern, unless additional sources of funding can be obtained. financial statements that are free from material misstatement, whether due to fraud or error. Management have disclosed in note 21 of the financial statements, relating to going concern, that they are engaged in various initiatives to ensure the sustainability of SANBI. Auditor-General’s responsibility The initiatives are mainly premised on obtaining additional funding from National Treasury. 3. As required by section 188 of the Constitution of South Africa, 1996 (Act No. 108 of 1996) At the date of the financial statements, the request has not formally been communicated to and section 4 of the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), my National Treasury and there is thus uncertainty as to the outcome thereof. responsibility is to express an opinion on these financial statements based on my audit. Significant uncertainties 4. I conducted my audit in accordance with International Standards on Auditing and General 10. With reference to note 10 to the financial statements, SANBI is involved in three legal claims Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010. Those standards regarding various incidents. The ultimate outcome of these three matters cannot presently require that I comply with ethical requirements and plan and perform the audit to obtain be determined and no provision for any liability that may result has been made in the reasonable assurance about whether the financial statements are free from material financial statements for these matters. misstatement. 5. An audit involves performing procedures to obtain audit evidence about the amounts and Restatement of corresponding figures disclosures in the financial statements. The procedures selected depend on the auditor’s 11. As disclosed in note 30 to the financial statements, the corresponding figures for 31 March judgement, including the assessment of the risks of material misstatement of the financial 2010 have been restated as a result of errors discovered during 31 March 2011 in the financial statements, whether due to fraud or error. In making those risk assessments, the auditor statements of SANBI at, and for the year ended, 31 March 2010. considers internal control relevant to the entity’s preparation and fair presentation of REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS the financial statements in order to design audit procedures that are appropriate in the 12. In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in circumstances, but not for the purpose of expressing an opinion on the effectiveness Government Gazette 33872 of 15 December 2010, I include below my findings on the annual of the entity’s internal control. An audit also includes evaluating the appropriateness performance report as set out on pages 25 to 45 and material non-compliance with laws of accounting policies used and the reasonableness of accounting estimates made by and regulations applicable to the public entity. management, as well as evaluating the overall presentation of the financial statements. Predetermined objectives 6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. 13. There were no material findings on the annual performance report. 59 Compliance with laws and regulations National Research Foundation Projects (NRF) 14. The financial statements submitted for audit did not comply with section 55(1)(a) to 20. As requested by the NRF, income and expenditure audits were conducted by an (c) of the PFMA as material misstatements were identified during the audit that were independent private audit firm during the year under review and factual finding reports subsequently corrected by management. were issued in connection with the following projects funded by the NRF: INTERNAL CONTROL • Incentive Funding for Rated Research Project • Herpetological Association of Africa Conference 15. In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in • KISC Project Government Gazette 33872 of 15 December 2010, I considered internal control relevant • IBOL Strategic Workshop to my audit, but not for the purpose of expressing an opinion on the effectiveness of • The Southern African Gnaphalieae Project internal control. The matters reported below are limited to the significant deficiencies that resulted in the findings on material non-compliance with laws and regulations. • Oscularia Project. • Conservation of Invertebrates in South African Biomes Project Leadership • National Herbarium Research Awards 16. Management did not implement adequate controls to ensure that the financial • Reptile Speciation Project statements submitted for auditing were subjected to a detailed review to ensure that it is • Second National Communication Project accurate and complete and that it fully complies with the relevant reporting framework. These reports covered the period 1 January 2010 to 31 December 2010 and were issued on Financial and performance management 8 March 2011 and the Second National Communication Project report was issued on 17. Proper record keeping was not implemented in a timely manner to ensure that complete, 7 September 2010. relevant and accurate information is readily accessible and available to support financial United Nations Development Programme (UNDP) and performance reporting. Furthermore, the financial statements submitted for auditing 21. As requested by the UNDP, income and expenditure audits were conducted by another were subject to material audit adjustments and were not in all instances supported by independent private audit firm during the year under review and factual finding reports reliable information. were issued in connection with the following projects funded by the UNDP: OTHER REPORTS • Grasslands • C.A.P.E. Biodiversity Conservation and Sustainable Development Investigation These reports covered the period 1 January 2010 to 31 December 2010 and were issued on 18. The misappropriation of project funding by an official was identified on 26 July 2011 by 28 May 2011. management and reported to the relevant authorities. The chief executive officer has indicated that the matter will be subjected to further forensic investigation. Donor funding World Bank Report 19. As requested by the World Bank, a full scope donor funding audit of the financial statements of the SANBI – CAPE GEF YCAPE/WB Project (Grant No. TF 05322) was conducted by me during the year under review. This project is funded by the United Nations Development Programme (UNDP) and the World Bank.

The report covered the period 1 April 2010 to 31 March 2011 and was issued on 29 April Cape Town 2011. 10 August 2011 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE 60 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2011

Restated March March Notes 2011 2010 R R ASSETS

Current assets 29,321,158 64,460,550

Consumables 22 97,722 110,977 Biological Assets 29 670,135 - Trade and other receivables 7 3,549,738 1,991,825 Cash and cash equivalents 8 25,003,563 62,357,748

Non-current assets 194,537,576 200,284,026 Property, plant and equipment 4 116,636,425 116,945,801 Intangible assets 5 2,250,194 1,713,160 Investment property 6 75,650,957 76,126,761 Defined benefit asset 11.1 - 5,498,304

Total assets 223,858,734 264,744,576

LIABILITIES Current liabilities 64,194,587 105,225,823

Projects Fund: Unspent commitments 2 28,945,195 61,465,428 Trade and other payables 3 35,249,392 43,760,395

Non-current liabilities 31,170,000 28,750,000

Retirement benefit obligation 11.2 31,170,000 28,750,000

Total Liabilities 95,364,587 133,975,823

Net Assets 128,494,147 130,768,753

Accumulated surpluses 128,494,147 130,768,753

Total net assets 223,858,734 264,744,576 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2011 61

Restated March March Notes 2011 2010 R R Revenue Government grants 160,830,000 150,886,000 Other grants, sponsorships and donations 15 146,506,651 137,946,901 Investment income 17 3,705,384 2,735,235 Sales 1,620,247 1,647,785 Fair Value gain less costs to sell on biological assets 1,646,045 1,040,485 Admission fees 26,261,934 26,126,220 Total Revenue 340,570,261 320,382,626 Other Income Rent received 8,572,738 8,223,251 Surplus on disposal of property, plant and equipment - 32,814 Foreign exchange gain - 194,702 Gain from a Defined Benefit Asset 512,823 - Other income 23 4,133,733 4,561,295 Total Income 353,789,555 333,394,688 Expenditure Personnel costs - MTEF 18 148,530,127 132,045,808 Personnel costs - Projects 18 24,650,629 21,668,893 Cost of Sales 975,910 1,040,485 Operating expenses 26 85,965,843 81,356,679 Audit fees: External audit 16 1,498,970 1,270,585 Audit fees: Internal audit 16 493,068 1,183,840 Finance costs 12 433 2,033 Depreciation and amortisation 4, 5 & 6 12,419,498 14,725,584 Impairment charge 4 - 728,813 Deficit on disposal of property, plant and equipment 185,298 - Direct project expenditure 27 81,344,385 90,187,769 356,064,161 344,210,489

Net deficit for the year (2,274,606) (10,815,801) SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE 62 STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2011

Income Notes Fund R

Balance at 31 March 2009 141,584,554

Restatement of prior unspent commitments 30.3 979,879

Net deficit for the year as previously reported (11,795,680)

Balance at 31 March 2010 - Restated 130,768,753

Net deficit for the year (2,274,606)

Balance at 31 March 2011 128,494,147 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2011 63

Restated March March Notes 2011 2010 R R Cash flows from operating activities Receipts 314,359,980 354,755,910 Government grant 160,830,000 150,886,000 Other grants, sponsorships and donations 113,986,418 163,060,348 Commercial and other income 39,543,562 40,809,562

Payments 343,062,468 329,820,861

Employee benefits 165,144,383 151,343,249 Suppliers and other payments 177,918,085 178,477,612

Cash (outflow) / inflow from operating activities 19 (28,702,488) 24,935,049

3,704,951 2,927,904

Investment income 17 3,705,384 2,735,235 Finance costs 12 (433) (2,033) Foreign exchange gain - 194,702

Net cash (outflow) / inflow from operating activities (24,997,537) 27,862,953

Cash flows from investing activities (12,356,648) (6,997,073) Purchase of property, plant and equipment 4 (8,592,547) (3,437,455) Purchase of intangible assets 5 (2,168,295) (566,801) Purchase of Investment Property 6 (1,632,708) (3,070,434) Proceeds from sale of property, plant and equipment 36,902 77,617

Net (decrease) / increase in cash and cash equivalents (37,354,185) 20,865,880 Cash and cash equivalents at beginning of year 62,357,748 41,491,868 Cash and cash equivalents at end of year 8 25,003,563 62,357,748 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 64

1. ACCOUNTING POLICY The financial statements have been prepared on a going concern basis in accordance with Standards of Generally Recognised Accounting Practice (GRAP) issued by the Accounting Standards Board and approved by the Minister of Finance. The following Standards of GRAP have been issued and are effective. The equivalent South African Statements of Generally Accepted Accounting Practices (GAAP) have also been provided.

GRAP Statement of GAAP IAS Statement Description Effective date GRAP 1 AC101 IAS 1 Presentation of Financial Statements 1 April 2005 GRAP 2 AC118 IAS 7 Cash Flow Statements 1 April 2005 GRAP 3 AC103 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 1 April 2005 GRAP 4 AC112 IAS 21 The Effects of Changes in Foreign Exchange Rates 1 April 2009 GRAP 5 AC 114 IAS 23 Borrowing Costs 1 April 2009 GRAP 6 AC132 IAS 27 Consolidated and Separate Financial Statements 1 April 2009 GRAP 7 AC110 IAS 28 Investments in Associates 1 April 2009 GRAP 8 AC119 IAS 31 Interests in Joint Ventures 1 April 2009 GRAP 9 AC111 IAS 18 Revenue from Exchange Transactions 1 April 2009 GRAP 10 AC124 IAS 29 Financial Reporting in Hyperinflationary Economies 1 April 2009 GRAP 11 AC109 IAS 11 Construction Contracts 1 April 2009 GRAP 12 AC108 IAS 2 Inventories 1 April 2009 GRAP 13 AC105 IAS 17 Leases 1 April 2009 GRAP 14 AC107 IAS 10 Events After the Reporting Date 1 April 2009 GRAP 16 AC135 IAS 40 Investment Property 1 April 2009 GRAP 17 AC123 IAS 16 Property, Plants and Equipment 1 April 2009 GRAP 19 AC130 IAS 37 Provisions, Contingent Liabilities and Contingent Assets 1 April 2009 GRAP 100 AC142 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations 1 April 2009 GRAP 101 AC137 IAS 41 Agriculture 1 April 2009 GRAP 102 AC129 IAS 38 Intangible Assets 1 April 2009 In the absence of a standard of GRAP that deals with a particular transaction or event, management used judgement in developing and applying an accounting policy. To this end, the standards of the following standard setters should be used in descending order, to the extent that these do not conflict with the Standards of GRAP or the framework for the Preparation and Presentation of Financial Statements: a. International Public Sector Accounting Standards Board (IPSASB). b. International Accounting Standards Board (IASB) and the Framework. c. Accounting Practices Board (APB). d. Accounting Practices Committee (APC) of the South African Institute of Chartered Accountants. The cash flow statement is prepared in accordance with the direct method. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 65

1.1 Income fund This Fund relates to the accumulated surplus or deficit of income over expenditure.

1.2 Project fund GRAP Statement of GAAP IAS Statement Description Effective date This Fund comprises temporary funds, which are project specific in terms of agreed terms between the Institute and funders as well as funds earmarked for major capital projects and GRAP 1 AC101 IAS 1 Presentation of Financial Statements 1 April 2005 also for projects of a non-capital nature. Funding is derived from donations, grants, transfers from the Income fund, and interest on the investment of temporary surpluses in this fund. GRAP 2 AC118 IAS 7 Cash Flow Statements 1 April 2005 The balance in the project fund at the end of the year is reflected under unspent commitments project funds as these funds are expected to be spent during the course of the following year. GRAP 3 AC103 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 1 April 2005 GRAP 4 AC112 IAS 21 The Effects of Changes in Foreign Exchange Rates 1 April 2009 1.3 Revenue GRAP 5 AC 114 IAS 23 Borrowing Costs 1 April 2009 Revenue from exchange transactions GRAP 6 AC132 IAS 27 Consolidated and Separate Financial Statements 1 April 2009 Revenue from exchange transactions is recognised as income to the extent that it is probable that the economic benefits associated with the transaction will flow to the Institute and GRAP 7 AC110 IAS 28 Investments in Associates 1 April 2009 the revenue can be reliably measured. Revenue from exchange transactions is measured at the fair value of the consideration received, excluding discounts, rebates, and other sales GRAP 8 AC119 IAS 31 Interests in Joint Ventures 1 April 2009 taxes or duty. The following specific recognition criteria must also be met before revenue is recognised: GRAP 9 AC111 IAS 18 Revenue from Exchange Transactions 1 April 2009 Admission fees GRAP 10 AC124 IAS 29 Financial Reporting in Hyperinflationary Economies 1 April 2009 GRAP 11 AC109 IAS 11 Construction Contracts 1 April 2009 Admission fees are recognised on a daily basis as and when they become due. GRAP 12 AC108 IAS 2 Inventories 1 April 2009 Donations and Sponsorships GRAP 13 AC105 IAS 17 Leases 1 April 2009 Ad hoc donations and sponsorships are recognised as income when received. GRAP 14 AC107 IAS 10 Events After the Reporting Date 1 April 2009 Sale of goods GRAP 16 AC135 IAS 40 Investment Property 1 April 2009 Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. GRAP 17 AC123 IAS 16 Property, Plants and Equipment 1 April 2009 GRAP 19 AC130 IAS 37 Provisions, Contingent Liabilities and Contingent Assets 1 April 2009 Investment income GRAP 100 AC142 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations 1 April 2009 Investment is recognised in the period that it accrues using the effective interest rate method. GRAP 101 AC137 IAS 41 Agriculture 1 April 2009 GRAP 102 AC129 IAS 38 Intangible Assets 1 April 2009 Revenue from non-exchange transactions Revenue from non-exchange transactions refers to transactions where the Institute received revenue from another entity without directly giving approximately equal value in exchange. An inflow of resources from non- exchange transaction is recognised as an asset shall be recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.

1.4 Government grants Government grants are recognised when it is probable that future economic benefits will flow to the Institute and when the amount of the grant can be measured reliably. Government grants are recognised as revenue to the extent that there is no further obligation arising from the receipt of the transfer payment. A liability is recognised to the extent that the grant is conditional. The liability is transferred to revenue as and when the conditions attached to the grant are met. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 66

1.5 Investment Property Investment Property comprises land and buildings held by SANBI to earn rentals. Where SANBI occupies such property or a significant part thereof, it is classified as an owner-occupied property, and accounted for in accordance with the accounting policy for Property Plant and Equipment. Investment Property is initially recorded at cost including transaction costs. Subsquent measurement is at depreciated historic cost with depreciation computed on a straight line method to nil residual value over an estimated 40 years useful life of buildings. Land is not depreciated. 1.6 Property, plant and equipment Property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses. The cost of an item of property, plant and equipment is recognised as an asset when: - it is probable that future economic benefits associated with the item will flow to the SANBI; and - the cost or fair value of the item can be measured reliably. Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add or replace part of an asset, when such costs meet the recognition criteria. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. Depreciation is charged so as to write off the cost or fair value of assets over their estimated useful lives, using the straight line method, on the following basis: Item Useful life Motor vehicles 5 years Equipment - Office equipment, furniture and fittings, art etc. 5 years - Computer equipment 3 years Buildings 40 years Buildings reflect improvements to property occupied on long-term leases or on state-owned land managed by the Institute. The residual value and the useful life of each asset are reviewed at each reporting date and adjusted if required. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount of another asset. The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss when the item is derecognised and is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. Repairs and maintenance are charged to the Statement of Financial Performance during the year in which they are incurred. 1.7 Intangible assets An intangible asset is recognised when: -it is probable that the expected future economic benefits that are attributable to the asset will flow to the Institute; and -the cost of the asset can be measured reliably. Intangible assets are initially recognised at cost. Intangible assets are carried at cost less any accumulated amortisation and any impairment losses. The amortisation period and the amortisation method for intangible assets are reviewed every financial year end. Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows: Item Useful life Computer software 3 years SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 67

1.8 Impairment of non-financial assets The Institute assesses at each reporting date whether there is any indication that an asset may be impaired. If any such indication exists, SANBI estimates the recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. Fair value is the amount an asset could be exchange between a knowledgeable and willing parties in an arms length transaction. Value in use is the present value of the assets remaining service potential. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss, which is recognised immediately in surplus or deficit. A reversal of an impairment loss of assets other than goodwill is recognised immediately in surplus or deficit. 1.9 Consumables Consumables consists of clothing. Consumables are measured at the lower of cost and net realisable value on the first-in-first-out basis. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of consumables comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of consumables are assigned using the first-in, first-out (FIFO) formula. The same cost formula is used for all inventories having a similar nature and use to SANBI. When consumables are sold, the carrying amounts of those consumables are recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of consumables to net realisable value and all losses of consumables are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of consumables, arising from an increase in net realisable value, are recognised as a reduction in the amount of consumables recognised as an expense in the period in which the reversal occurs. 1.10 Financial instruments Initial recognition SANBI classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. Financial assets and financial liabilities are recognised on SANBI’s Statement of Financial Position when SANBI becomes party to the contractual provisions of the instrument. When a financial asset or liability is recognised initially, the entity shall measure it at its fair value plus, in the case of a financial asset or financial liability not at fair value through the profit and loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arms length transaction. Financial assets SANBI’s financial assets consist of certain Trade and other receivables and Cash and cash equivalents. For measurement purposes, all financial assets are categorised as loans and receivables and after initial measurement are carried at amortised cost using the effective interest method less any allowance for impairment. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, as well as through the amortisation process. Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. Financial liabilities Financial liabilities consist of Interest bearing borrowings and certain Trade and other payables. For measurement purposes, all financial liabilities are carried at amortised cost subsequent to initial recognition. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 68

Amortised cost Amortised cost is computed using the effective interest method less any allowance for impairment. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to the initial carrying amount of the financial instrument. Impairment of financial assets If there is objective evidence that an impairment loss on assets carried at amortised cost has been incurred (such as the probability of insolvency or significant financial difficulties of the debtor), the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through use of an allowance account. The amount of the loss is recognised in profit or loss. Impaired debts are derecognised when they are assessed as uncollectible. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed, to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date. Any subsequent reversal of an impairment loss is recognised in profit or loss. Derecognition A financial asset or a portion thereof is derecognised when the entity realises the contractual rights to the benefits specified in the contract, the rights expire and the entity surrenders those rights or otherwise lose control of the contractual rights that comprise the financial asset. On derecognition, the difference between the carrying amount of the financial asset and the sum of the proceeds receivable and any prior adjustments to reflect the fair value of the asset that were reported in equity is included in net surplus or deficit for the year. A financial liability is derecognised when the obligation under the liability is discharged, cancelled or has expired. 1.11 Retirement fund and other Post employment benefits Retirement benefits are provided for employees through separate pension and provident funds to which both employer and employee contribute. The funds are regulated by the Pension Funds Act and operated as defined contribution plans managed by an independent board of trustees. The provident fund plan incorporates a defined benefit underpin for members of the plan prior to November 1995. Payments made to industry-managed (or state plans) retirement benefit schemes are dealt with as defined contribution plans where the SANBI’s obligation under the schemes is equivalent to those arising in a defined contribution retirement benefit plan. Actuarial gains and losses are recognised as income or expense when the net cumulative unrecognised actuarial gains and losses for each individual plan at the end of the previous reporting period exceeded 10% of the higher of the defined benefit obligation and the fair value of plan assets at that date. These gains or losses are recognised over the expected average remaining working lives of the employees participating in the plans. The past service costs are recognised as an expense on a straight line basis over the average period until the benefits become vested. If the benefits have already vested, immediately following the introduction of, or changes to, a pension plan, past service costs are recognised immediately. The defined benefit asset or liability comprises the present value of the defined benefit obligation (using a discount rate based on corporate bonds), less past service costs not yet recognised and less the fair value of plan assets out of which the obligation are to be settled. Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance policies. Plan assets are not available to the creditors of the SANBI nor can they be paid directly to SANBI. Fair value is based on market price information and in the case of quoted securities it is the published bid price. The value of any plan asset recognised is restricted to the sum of any past service costs not yet recognised and the economic benefits available in the form of refunds from the plan or reductions in the future contributions to the plan. The post employment medical benefits are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary increases, mortality rates and pension increases. Due to the long-term nature of these plans, such actuarial estimates are subject to significant uncertainty. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 69

1.12 Taxation No provision has been made for taxation, as SANBI is exempt from income tax in terms of Section 10 of the Income Tax Act, 1962 (Act no. 58 of 1962). 1.13 Value Added Tax The Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003) commenced on 22 December 2003. Previously, the definition of enterprise placed SANBI listed in Schedule 3A within the scope of VAT. The Amendment Act, however has amended this definition of enterprise and effectively places SANBI outside the scope of VAT. The amended definition of enterprise came into operation on 1 April 2005. Notwithstanding this, certain projects are obliged to register for VAT when certain criteria are met. 1.14 Operating leases The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date and whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. Where the SANBI does not transfer substantially all the risks and benefits of ownership of the asset, the lease is classified as an operating lease. Operating lease payments are recognised in the statement of financial performance as an expense when paid. SANBI as lessor Rental income is recognised on a monthly basis as a percentage of the lessees’ turnover. 1.15 Fruitless, wasteful and irregular expenditure Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of the Public Audit Act, 2004 (Act No. 25 of 2004). Fruitless and wasteful expenditure means expenditure that was incurred in vain and would have been avoided should reasonable care have been exercised. All irregular, fruitless or wasteful expenditure is charged against income in the period it was incurred. 1.16 Significant accounting judgements In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the application of judgement are inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Useful lives of property, plant and equipment For the financial period under review, management applied judgement in determining the extended useful lives of fixed assets in terms GRAP 17 (Property, Plant and Equipment). Refer to accounting policy note 1.6. Retirement benefits The cost of defined benefit pension plans and other post employment medical benefits as well as the present value of the pension obligation is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return of assets, future salary increases, mortality rates and future pension increases. All assumptions are reviewed at each reporting date. In determining the appropriate discount rate management considers the interest rates of corporate bonds in the respective country with an AAA or AA rating. The mortality rate is based on publicly available mortality tables for the specific country. Future salary increases and pension increases are based on expected future inflation rates for the specific country. Refer to note 11 for further details of assumptions.

Impairment of receivables Impairment of receivables are recognised when the SANBI’s outstanding debtors are above 120 days and debts which on merit appear to be irrecoverable. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 70

1.17 Foreign currencies Transactions in currencies other than the functional currency (Rands) are initially recorded at the rates of exchange ruling on the dates of the transactions. Monetary assets and liabilities denominated in such currencies are retranslated at the rates ruling on the Statement of reporting date. Exchange differences arising on the settlement of monetary items or on reporting an enterprise’s monetary items at rates different from those at which they were initially recorded are recognised as income or expenses in the year in which they arise. SANBI did not enter into forward contracts and options in order to hedge its exposure to foreign exchange risks, during the financial year under review.

1.18 Related parties All transactions and balances with national departments of Government and state-controlled entities are regarded as related party transactions and are disclosed separately in the notes to the annual financial statements. Parties are considered to be related if one party has the ability to control the other party or to exercise significant influence or joint control over the other party in making financial and operational decisions. A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged. 1.19 Rental Income Rental income arising from operating leases is accounted for based on the lessees’ turnover. This makes it impractical to account for rental income on a straight line basis. Contingent rental payments are recognised as income in the period in which they accrue. 1.20 Events after the reporting period After the year end, management identified an occurrence of misappropriation of funds by a SANBI official. The relevant authorities have been informed and criminal proceedings have been instituted. An investigation of the matter is still underway. 1.21 Biological assets SANBI’s main purpose is the conservation of a representative system of biodiversity, encompassing fauna, flora and unique scenery within the National Botanical Gardens and the Scientific management of the ecosystem under its management authority. SANBI does not focus on traditional natural resource management of species, but rather on ecosystem management and ecological integrity within the Botanical Gardens. SANBI can intervene in eco-system responsibility and sustainability, but it focuses management on complementing natural processes (e.g. fires and disease outbreaks) under a minimum interference philosophy. SANBI does not manage the reproduction of biodiversity, but works to maintain biodiversity representativity through complementary programmes that promote resilience and ensure ecosystem integrity. SANBI acquired the majority of its biodiversity at no cost to SANBI. SANBI management is involved in the biological transformation of fauna and flora primarily to provide the public with access to recreational resources, rather than for sale purposes. SANBI does not measure the quantities and value of biological assets as they are not of a nature that can be easily counted. SANBI’s conservation of its flora does not amount to agricultural activity. However, when surplus plants are on hand these plants are sold to the public. These plants are then considered to be agricultural produce (in that the intention changes from conservation to sale), therefore the plants fall into the scope of GRAP 101. These plants are then valued in terms of this standard at Fair Value less costs to sell, with the fair value adjustment being included in the Statement of Financial Performance. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 71

Restated March March 2011 2010 R R 2 Unspent Commitments Funds 2.1 Projects Fund: Unspent commitments Income

Government grants 10,000,000 10,000,000 Other grants, sponsorships and donations 110,683,310 160,476,126 Investment income 1,080,318 2,045,791 Sales 5 200 Foreign exchange loss - (4,486) Other income 66,331 1,271,873 121,829,964 173,789,504 Less: Expenditure Expenditure capitalised 8,068,458 4,716,296 Expenditure not capitalised 146,281,739 143,959,761 (32,520,233) 25,113,447 Unspent commitments project funds at beginning of the year 61,465,428 36,351,981 Unspent commitments project funds at the end of the year 28,945,195 61,465,428

2.2 Total projects fund: unspent commitments: 2011 Closing balance Movement Opening balance MTEF 7,330,443 3,431,964 3,898,479 External funded 21,614,752 (35,952,197) 57,566,949 Total projects fund: unspent commitments as at 31 March 2011 28,945,195 (32,520,233) 61,465,428 - Total projects fund: unspent commitments: 2010 - restated Closing balance Movement Opening balance MTEF 3,898,479 4,654,742 (756,263) External funded 57,566,949 20,458,705 37,108,24 4 Total projects fund: unspent commitments as at 31 March 2010 61,465,428 25,113,447 36,351,981 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 72

March March 2011 2010 R R 3 Trade and other payables Trade payables 9,651,349 9,342,416 Other payables * 13,691,175 21,907,311 Leave liability 7, 861,594 8,678,161 Services bonuses 3,969,274 3,755,930 Performance and related incentives 76,000 76,577 35,249,392 43,760,395 * Other payables consist of mainly of year end accruals. - Terms and conditions of the above financial liabilities - Trade and other payables are non-interest bearing and are normally settled within 30 days.

4 Property, plant and equipment March 2011 Total Land and Buildings Vehicles Equipment Cost R R R R On hand at start of financial year 177,613, 842 123,562,131 12,381,699 41,670,012 Purchases 8,592,547 4,819,679 430,698 3,342,170 Demolished / disposals / write-offs (323,861) - (92,048) (231,813) Impairment charge - - - On hand at end of financial year 185,882,528 128,381,810 12,720,349 44,780,369

Accumulated depreciation Accumulated depreciation at start of financial year 60,668,041 18,225,952 7,309,866 35,132,223 Depreciation for the year 8,854,659 3,120,614 1,106,412 4,627,633 Depreciation on disposals / write-offs (276,597) - (73,638) (202,959) Impairment charge - - - Accumulated depreciation 69,246,103 21,346,566 8,342,640 39,556,897 Net book value at end of financial year 116,636,425 107,035,244 4,377,709 5,223,472 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 73

Restated March 2010

Total Land and Buildings Vehicles Equipment Cost R R R R On hand at start of financial year 255,889,751 204,126,236 11,855,916 39,907,599 Prior period classification error to Investment Property (81,081,323) (81,081,323) - - Restated 174,808,428 123,044,913 11,855,916 39,907,599 Prior period classification error to intangibles 407,711 - - 407,711 Purchases 3,437,455 1,301,885 525,783 1,609,787 Demolished / disposals / write-offs (255,085) - - (255,085) Impairment charge (784,667) (784,667) - - On hand at end of financial year 177,613,842 123,562,131 12,381,699 41,670,012

Accumulated depreciation Accumulated depreciation at start of financial year 55,226,547 21,913,238 5,943,517 27,369,792 Prior period classification error to Investment Property (6,576,074) (6,576,074) - - Restated 48,650,473 15,337,16 4 5,943,517 27,369,792 Depreciation for the year 12,283,702 2,944,642 1,366,349 7,972,711 Depreciation on disposals / write-offs (210,280) - - (210,280) Impairment charge (55,854) (55,854) - - Accumulated depreciation 60,668,041 18,225,952 7,309,866 35,132,223 Net book value at end of financial year 116,945,801 105,336,179 5,071,833 6,537,789

In accordance with the mandate as envisaged in the National Environmental Management Biodiversity Act (NEMBA), SANBI is responsible for managing, controlling and maintaining all National Botanical Gardens. The majority of the land that is currently utilised as National Botanical Gardens in the Republic belongs to different tiers of government, and the control of the land is vested in SANBI in accordance with its mandate. A register containing the details of property, plant and equipment is available for inspection at the Institute’s registered office. There are no restrictions, as no title / property plant and equipment is pledged as security for any liabilities. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 74

5 Intangible assets Restated March March 2011 2010 Computer Computer Software Software Cost R R On hand at start of financial year 4,338,225 4,179,135 Prior period classification error - (407,711) Purchases 2,168,295 566,801 Demolished / disposals / write-offs (918,948) - On hand at end of financial year - Restated 5,587,572 4,338,225

Accumulated amortisation at start of financial year Accumulated amortisation at start of financial year 2,625,065 1,632,105 Amortisation for the year 1,456,324 992,960 Amortisation on disposals / write-offs (74 4,011) - Accumulated amortisation at end of financial year 3,337,378 2,625,065 Net book value at end of financial year 2,250,194 1,713,160

6 Investment property March 2011 Restated March 2010 Buildings Buildings Cost R R On hand at start of financial year 84,151,757 81,081,323 Purchases 1,632,708 3,070,434 On hand at end of financial year 85,784,465 84,151,757

Accumulated depreciation Accumulated depreciation at start of financial year 8,024,996 6,576,074 Depreciation for the year 2,108,512 1,448,922 Accumulated depreciation at end of financial year 10,133,508 8,024,996 Net book value at end of financial year 75,650,957 76,126,761

The fair value of Investment Property at 31 March 2011 is R182 762 713. The basis for determining the fair value is the insured replacement value of the buildings. The buildings cannot be disposed of by SANBI under normal market conditions as the land is owned by government. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 75

March 2011 March 2010 R R 7 Trade and other receivables Trade debtors 3,275,654 1,053,682 Provision for doubtful debts (481,145) (389,456) Receiver of Revenue (VAT) 14,437 79,714 Accrued income 262,544 123,403 Prepaid expenses 89,266 123,436 Other 388,982 1,001,046 3,549,738 1,991,825

Terms debtors consist mainly of Rental Income from restaurants. Trade debtors are non-interest bearing and based on 30 days from invoice. Fair value of trade and other receivables Trade and other receivables 3,549,738 1,991,825 Amounts neither past due nor impaired are considered fully recoverable. No credit quality issues are noted.

Trade and other receivables past due but not impaired Trade and other receivables which are less than 3 months past due are not considered to be impaired. At 31 March 2011, R28 506 (2010: R175 804) were past due, but not impaired. The ageing of amounts past due but not impaired is as follows:

0 - 1 month past due 6,046 4,185 1 - 2 month past due - 40,792 2 - 3 month past due 3,976 130,827 10,022 175,804 Trade and other receivables impaired

As of 31 March 2011, trade and other receivables of R481 145 (2010: 389 456) were impaired and provided for. The ageing of these loans is as follows:

3 to 6 months 481,145 389,456

Reconciliation of provision for impairment of trade and other receivables

Opening balance 389,456 630,660 Provision provided /(reversed) in the year 91,689 (241,204) 481,145 389,456 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 76

March 2011 March 2010 R R 8 Cash and cash equivalents Short term deposits 11,529,498 25,885,949 Cash on hand 1,153,919 914,561 Bank balances 12,320,146 35,557,238 25,003,563 62,357,748

Cash on current accounts at banks earns interest. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of SANBI and earn interest at the respective short-term deposit rates.

9 Capital commitments Approved and contracted: Capital projects 2,403,508 11,699,598 2,403,508 11,699,598 These are commitments in respect of various contracts.

10 Contingent liabilities Guarantees Staff housing guarantees, estimated maximum 170,698 312,100 Recoverable from retirement funds (170,698) (312,100) - -

SANBI assists qualifying officials partly for housing loans from financial institutions. For this purpose agreements have been entered into with approved financial institutions to the effect that SANBI will guarantee a maximum of 20% of the housing loan for which a person qualifies. The maximum amount is based on the official’s basic salary. SANBI guaranteed 12 loans in the current year (2010: 19). The guarantees are fully recoverable from the employees’ cash portion of their retirement fund.

Forensic Audit A forensic audit was conducted on the Greening of Nation project. The findings resulted in the suspension of the contract with the service provider and also the lodging of a criminal case. SANBI has agreed to engage an arbitration process for termination of the contract. In the unlikely event of the award going in favour of the service provider, SANBI may be expected to pay R950 000, being the retainer withheld in terms of the original contract. Municipal Services National Department of Public Works (NDPW) paid municipal services on Farm 875, Cecil John Rhodes, Western Cape to the City of Cape Town Municipality since September 2003, amounting to R3,3 million. Farm 875 is under custodianship of Kirstenbosch - operated by SANBI. NDPW wants to recover the services paid from SANBI. The legality of the potential claim is under investigation. Claim submitted by 3rd Party A claim of R1,8 million submitted by 3rd party for injury suffered at Garden. Claim submitted to insurers for assessment of liability. The claim is still under investigation. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 77

11 Retirement funds 11.1 Post-Retirement benefits The South African National Biodiversity Institute Retirement Funds consist of the South African National Biodiversity Institute Provident Fund and the South African National Biodiversity Institute Pension Fund. Membership of the funds are a prerequisite for all permanently employed staff employed as from the 1st of December 1994. The policy is to provide retirement benefits for employees by means of separate Pension and Provident Funds to which both employee and employer respectively, contribute in equal proportion. The funds are administered by the South African Mutual Life Assurance Society (Old Mutual), which is registered in terms of the Pension Fund Act 24 of 1956. The Provident Fund is a defined contribution fund, except for members in service on or before 30 November 1995 who qualify for a defined benefit from the fund. The Pension Fund is also a defined contribution fund. The employer contributes to the Provident Fund while the employees’ contribution is paid to the Pension Fund. The surplus of the actuarial valuation as 31 March 2011 has been taken into account in the AC116 as at 31 March 2011 calculation. The next statutory actuarial valuation will be undertaken in June 2011. Retirement benefit income statements amounts are included in personnel costs - refer note 18.

March March 2011 2010 Fund information for the year R R

Total Employer’s Contribution 4,917,627 7,007,727

Fair Value of Defined Benefit Obligations Present value of obligation as at 31 March 2010 (172,570,646) (165,541,408) Interest cost (13,705,219) (13,243,651) Current service cost (7,425,052) (7,007,727) Benefits paid 14,299,709 20,772,616 Present value of obligation as at 31 March 2011 183,736,355 172,570,646 Actuarial loss 4,335,147 7,550,476

Fair Value of Plan Assets Fair value plan of assets as at 31 March 2010 186,917,313 184,884,255 Expected return on plan assets 16,798,705 16,033,506 Contributions 4,917,627 7,007,727 Benefits paid (14,299,709) (20,772,616) Fair value of plan assets as at 31 March 2011 (194,360,087) (186,917,313) Actuarial gain (loss) on plan assets (26,151) 235,559 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 78

March March 2011 2010 R R Unrecognised Actuarial Loss / (Gain) Unrecognised actuarial (gain) as at 31 March 2010 (8,848,363) (14,327,327) Recognised actuarial (gain) / loss as at 31 March 2010 - - Net Unrecognised actuarial gain as at 31 March 2010 (8,848,363) (14,327,327) Actuarial loss / (gain) on present value of obligation 4,335,147 6,947,406 Actuarial loss on fair value of plan assets (26,151) 235,559 (Loss) / gain recognised in terms of corridor rule are provided for (6,084,364) (1,704,001) Unrecognised actuarial gain as at 31 March 2011 (10,623,731) (8,848,363)

Amounts recognised in the Statement of Financial Position Present value of fund obligation (183,736,355) (172,570,646) Fair value of plan assets 194,360,087 186,917,313 Surplus in plan 10,623,732 14,346,667 Unrecognised actuarial gains (10,623,732) (8,848,363) Net asset in balance sheet * - 5,498,304

Post - retirement benefits * In terms of clause 60 of AC116 an asset should not be recognised in the entity’s statement of financial position unless the entity has control of the asset, the asset arises due to past events (e.g. excess contributions) and the entity has beneficial use of the assets (e.g. via a contribution holiday or cash refund). A liability must always be recognised. The Employer Surplus Account as at 31 March 2011 was R10 623 731, but according to AC116 no surplus was recognised in the statement of financial position. The best estimate of contributions to be made in the next financial year is R5.3 million.

Current service cost 7,425,052 7,007,727 Interest on obligation 13,705,219 13,243,651 Expected return on plan assets (16,798,705) (16,033,506) Net actuarial loss / (gains) recognised in the current year 6,084,364 1,704,002 Past service cost - 603,070

Net expense recognised in Statement of Financial Performance 10,415,930 6,524,944 Key Actuarial Assumptions in determining the above positions Discount rate (annualised yield on R157) 7.97% 8.11% Inflation rate ( Difference in annualised yield R186 and R197) 6.30% 5.50% Expected rate of salary increases (Inflation + 1%) 7.30% 6.50% Expected rate of return on plan assets (Actuarial valuation) 9.00% 9.00% SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 79

5 year History Year ending 31 March 2007 31 March 2008 31 March 2009 31 March 2010 31 March 2011 R R R R R

Present Value of Obligation 152,103,000 178,218,000 165,541,408 172,570,646 183,736,355 Present Value of Assets 60,689,984 183,870,883 184,884,255 186,917,313 194,360,087 Surplus ( Shortfall) 8,586,984 5,652,883 (19,342,847) 14,346,667 10,623,732

Experience adjustments - Liabilities Interest cost 10,946,525 14,207,379 16,710,928 13,243,651 13,705,219 Expected Contributions made 4,295,312 4,667,340 5,867,381 7,007,727 4,917,627 Benefit paid (4,028,102) (8,269,362) (8,696,803) (20,772,616) (14,299,709) Increase in Liabilities 34,547,000 26,115,000 (17,692,112) 6,426,167 8,658,284 Versus - Experience adjustments - Liabilities 11,213,735 10,605,357 13,881,506 (521,238) 4,323,137 Actuarial (gain) loss on Liabilities 23,333,265 15.3% 15,509,643 8.7% (31,573,618) -19.1% 6,947,405 4.0% 4,335,147 2.4%

Experience adjustments - Assets Investment returns 11,220,207 14,309,560 16,423,798 16,033,506 16,798,705 Contributions made 5,175,158 4,805,000 5,867,381 7,007,727 4,917,627 Benefits paid (4,028,102) (8,269,362) (8,696,803) (20,772,616) (14,299,709) Increase in Assets 40,523,519 23,180,899 26,175,380 2,504,176 7,4 42,774 Versus - Experience adjustments - Assets 12,367,263 10,845,198 13,594,376 2,268,617 7,416,623 Actuarial loss on Assets 28,156,256 17.5% 12,335,701 6.7% 12,581,004 6.8% 235,559 0.1% 26,151 0.0% SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 80

11.2 Post - retirement medical aid benefits

Amounts Recognised in the Statement of Financial Performance March March 2011 2010 Post-employment medical benefits: R R Current service cost 1,270,000 1,300,000 Interest cost 2,680,000 2,560,000

Net actuarial gains recognised in the year (980,000) (2,700,000) Total included in employee benefits expense 2,970,000 1,160,000

Amounts Recognised in the Statement of Financial Position

Post-employment medical benefits: Present value of funded obligations 31,170,000 28,750,000 - Members 29,880,000 27,210,000 - Non-members 1,290,000 1,540,000

Net Liability in the Statement of Financial Position 31,170,000 28,750,000

Long - term provision 31,170,000 28,750,000

Movements in the Net Liability in the Statement of Financial Position:

Post-employment medical obligation: Net liability at start of year 28,750,000 28,020,000 Interest cost 2,680,000 2,560,000 Current service cost 1,270,000 1,300,000 Benefit payments (550,000) (430,000) Projected accrued services liability at end of year 32,150,000 31,450,000 Actuarial (gain) loss (980,000) (2,700,000) Net liability at end of year 31,170,000 28,750,000 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 81

Post - retirement medical aid benefits (continued) March March 2011 2010 R R Principal Actuarial Assumptions at Statement of reporting date: Discount rate 31 March (%) 9.20% 9.00% General increases to medical aid subsidy (%) 6.50% 6.50% Proportion continuing membership at retirement (%) 100.00% 100.00% Proportion of retiring members who are married (%) 90.00% 90.00%

Retirement age (years) 60 60

Certain staff retire at 65 years.

Projection of liability to 31 March 2012

The projection of the results from 31 March 2011 to 31 March 2012, assuming that the experience follows the assumptions exactly, is as follows :

Post-employment medical obligation: R Net liability at start of year 31,170,000 Interest cost 2,970,000 Current service cost 1,380,000 Benefit payments (610,000) Projected accrued services liability at end of year 34,910,000 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 82

Sensitivity Analyses

The results are dependent on the assumptions used. The table below illustrates the impact on the past service cost as at 31 March 2011.

Accrued Service Liabilities as In-Service and Continuation Members % Increase at 31.3.2011 (R million) Assumptions as above 31.17 Discount rate - increases by 1% p.a. 26.92 -14% Discount rate - reduces by 1% p.a. 36.54 17% Medical Aid subsidy inflation - increases by 1% p.a. 36.71 18% Medical Aid subsidy inflation - reduces by 1% p.a. 26.73 -14% Retirement age - 65 for all employees who joined on or before 13 February 2000; retirement age 60 for all 24.88 -20% who joined on or after 14 February 2000.

Discount rate - reduces by 1% p.a. 1.73 25% Medical Aid subsidy inflation - increases by 1% p.a. 1.74 26% Medical Aid subsidy inflation - reduces by 1% p.a. 1.10 -20% Retirement age - 65 for all employees who joined on or before 13 February 2000; retirement age 60 for all 1.12 -19% who joined on or after 14 February 2000.

1.4.2011 - Interest Cost 31.3.2012 % Increase (R million) Assumptions as above 2.97 Discount rate - increases by 1% p.a. 2.83 -5% Discount rate - reduces by 1% p.a. 3.11 5% Medical Aid subsidy inflation - increases by 1% p.a. 3.51 18% Medical Aid subsidy inflation - reduces by 1% p.a. 2.53 -15% Retirement age - 65 for all employees who joined on or before 13 February 2000; retirement age 60 for all 2.36 -21% who joined on or after 14 February 2000. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 83

March March 2011 2010 R R 12 Finance costs Interest paid: other 433 2,033

433 2,033 13 Risk Management In the course of SANBI’s operations it is exposed to credit, liquidity and market risk. SANBI has developed a comprehensive risk strategy in terms of Treasury Regulation 27.2 (require a public entity to have a comprehensive risk management strategy, which includes a fraud prevention plan) in order to monitor and control these risks. The risk management process relating to each of these risks is discussed under the headings below. SANBI’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on SANBI’s financial performance. SANBI does not use derivative financial instruments to hedge risk exposures. Risk management is performed by management under policies approved by the executive committee. Management identifies, evaluates and manages financial risks in close co-operation with SANBI’s operating units.

Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. SANBI’s risk to liquidity is a result of the funds available to cover future commitments. The Institute manages liquidity risk through an ongoing review of future commitments and credit facilities. Cash flow forecasts are prepared. Prudent liquidity risk management implies maintaining sufficient cash and obtaining the continued commitment from the Department of Environmental Affairs for the government grant and related project funding. Due to the nature of the business, management maintains flexibility in funding by maintaining expenses below budget.

The table below analyses SANBI’s financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Carrying amounts equate to their fair values.

Total Less than 1 month Between 1 and 3 months Between 4 and 12 months Later than 1 year At 31 March 2011 R R R R R

Trade and other payables 23,342,721 16,363,720 6,908,045 70,956 -

Total Less than 1 month Between 1 and 3 months Between 4 and 12 months Later than 1 year At 31 March 2010 R R R R R Trade and other payables 31,249,727 25,885,493 5,231,624 132,610 - SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 84

13 Risk Management (continued) Market risk

Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. SANBI obtains competitive rates from approved financial institutions on a monthly basis. SANBI’s exposure to interest rate risk and the effective interest rates on financial instruments at the statement of reporting date are as follows:

March 2011 March 2010

Effective interest Effective interest Floating rate Amount TOTAL rate rate

YTD 31 March 2011

Assets

Cash 11,529,498 5.0% 25,885,949 6.7%

Accounts receivable - 0.0% - 0.0%

Total financial assets 11,529,498 25,885,949

Total financial assets 11,529,498 25,885,949

Total financial liabilities - -

11,529,498 25,885,949

Interest rate risk - Deposits As SANBI has significant interest-bearing assets, hence SANBI’s income and operating cash flows are dependent on changes in market interest rates. SANBI reviews its interest rate exposure on a regular basis. Market rates are compared with stable and credit-rated financial institutions. Various institutional rates are simulated taking into consideration terms of deposits, availability of cash resources and any related risk factors. Based on these scenarios, the impact of a positive 1% shift in deposit interest rates will have R125,167 (2010: R322,053) on income. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 85

13 Risk Management (continued) March March 2011 2010 R R Sensitivity Deposit rate 1 % Deposit rate 1 % higher higher Investment income 125,167 322,053

Sensitivity Deposit rate 1 % Deposit rate 1 % decrease decrease Investment income 125,167 322,053

Risk Management Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Financial assets, which potentially subject SANBI to the risk of non performance by counter parties, consist mainly of cash and cash equivalents and accounts receivable. SANBI limits its treasury counter-party exposure by only dealing with well-established financial institutions approved by National Treasury through the approval of their cash management policy in terms of Treasury Regulation. SANBI’s exposure is continuously monitored by the Accounting Authority. SANBI does not have any material exposure to any individual or counter-party. SANBI’s largest concentration of credit risk is limited mainly to the sale of plants. No events occurred in the industry during the financial year that may have an impact on the accounts receivable that has not been adequately provided for. SANBI no longer assists qualifying employees to obtain 100% housing loans from financial institutions without a cash deposit, as the financial institution concentrate more on the affordability other than what the staff member qualifies for. However, these guarantees are fully recoverable from the employees’ cash portion of their retirement fund.

March March 2011 2010 R R Maximum exposure to credit risk of financial assets at year end:

Trade receivables 3,927,180 2,178,131 Cash and cash equivalents 25,003,563 62,357,748 Guaranteed loans 170,698 312,100

Fair value of financial assets at year-end Trade receivables 3,927,180 2,178,131 Cash and cash equivalents 25,003,563 62,357,748

Sensitivity Analysis The entity is mainly exposed to the US dollar currencies. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 86

14 Capital management policy

The objective of SANBI is to maintain a strong capital base so as to maintain public sector confidence and to sustain future development of the SANBI. The Institute is a schedule 3A public entity and reports to the Department of Environmental Affairs (DEA) and the latter reports to National Treasury. SANBI is in discussion with DEA and Treasury regarding the SANBI’s capital requirements to meet it’s strategic objectives.

15 Other Grants, sponsorships and donations March March 2011 2010 Government R R

Department of Environmental Affairs 79,504,191 89,279,260 Department of Water Affairs and Forestry 13,654,207 9,158,061 Department of Science and Technology - 2,700,000 National Lotteries Board - 325,402 Western Cape Provincial Government 500,000 - South African Environmental Observation Network (NRF) 1,619,857 750,500 Gauteng Department of Agriculture Conservation & Environment 900,000 1,000,000 Rand Water 194,654 120,000 CSIR (Council for Scientific Research) 250,000 16,480 Eastern Cape Parks Board 191,305 - Medical Research Council 102,410 7,500 National Research Foundation 821,752 562,659

City of Tshwane - 735,000

97,738,376 104,654,862 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 87

March March 2011 2010 Other Grants, sponsorships and donations (Continued) R R Foreign Food and Agriculture Organisation 1,346,644 - EDIT (European Distributed Institute for Taxonomy) 29,497 - Netherlands Centre for Biodiversity Naturalis 158,842 - Birdlife International - 23,281 CEPF via Conservation International 779,558 1,269,760 European Commission FP6 Programme 247,396 129,399 GBIF 361,575 200,000 German Development Cooperation (GTZ) 100,000 - BIOPAT E.V. 60,383 - JRS Biodiversity Foundation - 709,493 Macauley Institute - 18,037 Norwegian Government (via DEA) 985,943 2,681,516 Royal Botanic Gardens Kew - 2,106,140 Royal Danish Embassy - 961,000 Rufford Maurice Laing Foundation - 82,834 Smithsonian Institute - 83,753 The Andrew W Mellon Foundation - 3,976,991 The Open University 167, 872 233,462 The World Bank (International Bank for Reconstruction and Development) 204,788 18,531,912 UNDP 7,208,247 20,579,093 UNEP 234,106 643,805 UNOPS 238,660 556,740 University of Connecticut - 51,195 University of Hamburg - 1,296,320 Western Australian Department of Environment and Conservation - 171,821 Wildlife Conservation Society (WCS) - 13,006 World Resources 30,371 - WWF (World Wide Fund for Nature) 197,775 387,877 12,351,657 54,707,435 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 88

March March 2011 2010 Other Grants, sponsorships and donations (Continued) R R Corporate

Featherbrooke Estate - 10,000 SA Gold Coin Exchange 300,000 - Inyanda Coal - 83,176 Old Mutual 1,562,000 1,451,531 Pick ‘n Pay - 29,500 Richards Bay Minerals - 22,964 SAPPI 417,190 285,000 Standard Bank of South Africa - 30,000 2,279,190 1,912,171

Individuals & Organisations

Camellia Society 15,100 - Distell 150,000 - Cape Town Tourism - 100,000 Cape Nature Conservation - 70,000 Norvatis 110,000 - Claremont Rotary Club - 50,000 Kogelberg Biosphere Reserve Company - 20,000 The Parker Family of Elandsfontein Nature Reserve - 50,000 Table Mountain Fund 215,500 732,205 The Botanical Society of South Africa 696,340 392,331 SANParks 35,079 10,000 University of Western Cape 50,000 - 1,272,019 1,424,536 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 89

March March 2011 2010 Other Grants, sponsorships and donations (Continued) R R Trusts

BOE Trust Ltd 30,000 22,500 Dr Sunshine 22,522 1,684 Estate Helen Mitchell - 12,284 Fitzroy Trust 45,000 80,000 Graafs Trust - 1,388 HR Hill Trust 50,719 86,026 Botanical Education Trust 92,515 - Environmental Wildlife Trust 10,000 - Rowland & Leta Hill Trust - 50,000 Sundry 400 8,625 251,156 262,507

Other

Bench Donations 37,000 82,464 Sundry Donations 57,020 16,373 94,020 98,837

Total Donations, Grants and Sponsorships for the year received 113,986,418 163,060,348

Project Income transferred - Unspent commitments funds 32,520,233 (25,113,4 47)

TOTAL 146,506,651 137,946,901 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 90

March March 2011 2010 R R 16 External audit 1,498,970 1,270,585 Fees 1,495,245 1,263,081 Expenses 3,725 7,504

Internal audit 493,068 1,183,840 Fees 388,588 690,497 Expenses 39,616 42,520 Other services 64,864 450,823

1,992,038 2,454,425

17 Investment income

Interest revenue

Bank - call account 3,137, 887 1,256,568 Bank - call account : Project funds 1,080,320 1,478,667

3,705,384 2,735,235

18 Personnel costs

Personnel costs and benefits 165,597,901 150,732,666 Provident fund 3,890,986 482,784 Leave and workmen’s compensation 721,869 1,339,251 Post retirement medical aid 2,970,000 1,160,000

173,180,756 153,714,701

Personnel costs include all amounts paid to employees including payments to retirement funds as disclosed in note 11. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 91

March Restated 2011 March 2010 R R

19 Cash flows from operating activities Notes

Net deficit for the year (2,274,606) (10,815,801) Adjustments for: Depreciation and amortisation 4 , 5 & 6 12,419,498 14,725,584 Impairment charge 4 - 728,813 Investment income 17 (3,705,384) (2,735,235) Interest paid 12 433 2,033 Foreign exchange gain - (194,702) Unspent project commitments (32,520,233) 25,113,4 47 Deficit / (Surplus) on disposal of fixed assets 185,298 (32,814)

Operating surplus before working capital changes (25,894,994) 26,791,325 (Increase) / decrease in Defined Benefit asset 5,498,304 (482,784) Increase in retirement benefit obligation 2,420,000 730,000

Working capital changes (10,725,798) (2,103,492) (Increase) / decrease in consumables (656,880) 521,839 (Increase) / decrease in trade and other receivables (1,557,913) 251,011 (Decrease) / increase in trade and other payables 8,511,005 (2,876,342)

Cash (outflow) / inflow from operating activities (28,702,488) 24,935,049 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 92

20 Related Parties Related Party Relationships Reporting Department Department of Environmental Affairs Other Government Departments Department of Science and Technology Western Cape Provincial Government Department of Water Affairs Public Entities Development Bank of South Africa Independent Development Trust Medical Research Council National Research Foundation South African Environmental Observation Network (NRF) Government Printing Works S.A. Post Office SABC Ezemvelo KZN Wildlife Eastern Cape Parks Board South African National Parks Telkom SA Ltd ICASA Rand Water CSIR Gauteng Department of Agriculture Cape Nature Conservation Working on Fire Eskom Rand Water Municipalities City of Cape Town City of Tshwane City of Durban Overstrand Municipality Hantam Municipality Mbombela Municipality Mangaung Municipality Ukhahlamba District Municipality Breede Valley Municipality Msunduzi Municipality SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 93

Related Party Transactions (continued) March 2011 March 2010 R R Government Grants Department of Environmental Affairs 160 830 000 150,886,000

Other Grants, Sponsorships and Donations Department of Environmental Affairs 79,504,199 91,014,260 Department of Science and Technology - 2,700,000 Department of Water Affairs 13,654,207 9,158,061 Medical Research Council - 7,500 National Research Foundation 821,752 562,659 South African Environmental Observation Network (NRF) 1,619,857 750,500 Rand Water 194,654 120,000 CSIR 250,000 16,480 Western Cape Provincial Government 500,000 - Eastern Cape Parks Board 191,305 - Gauteng Department of Agriculture Conservation & Environment 900,000 1,000,000 97,635,974 105,329,460 Purchases City of Cape Town 1,511,160 1,343,173 CSIR 1,359,457 1,209,962 Department of Agriculture 4,103 7,118 Department of Water 19,306 27,300 Eskom 102,643 94,260 Government Printing Works 22,954 12,759 Overstrand Municipality 110,993 - SABC 11,692 7,576 South African National Parks 7,256,605 8,025,189 Telkom SA Ltd 1,954,435 2,329,242 Hantam Municipality 2,735 2,829 Mangaung Municipality 199,871 76,543 Mbombela Municipality 220,921 139,706 Ukhahlamba District Municipality 3,843,116 3,678,008 ICASA 1,846 3,808 Rand Water 4,364,085 - City of Tshwane 1,074,816 692,679 City of Durban 107,057 472,553 Breede Valley Municipality 157,738 187,526 Msunduzi Municipality 556,447 247,016 22,881,980 18,557,247 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 94

Related Party Transactions (continued) March March 2011 2010 Sales CSIR 1,812 8,103 Cape Nature Conservation 56,493 96,733 City of Cape Town - 194,316 Medical Research Council - 15,000 National Parks Board 20,785 3,981 South African Environmental Observation Network (NRF) 6,820 - Working on Fire 176,434 42,363 Department of Environmental Affairs - 268,508 South African National Parks 236,870 83,688 499,214 712,692

Accounts payables City of Cape Town 49,453 123,467 CSIR 463,427 - Cape Nature 293,989 - Government Printing Works 2,638 2,975 Overstrand Municipality 40,341 14,666 South African National Parks 314,265 1,300,989 Telkom SA Ltd 78,185 86,258 Hantam Municipality 742 - Mangaung Municipality 12,453 11,825 Ukhahlamba District Municipality 19,378 546,850 Department of Water Affairs 82 39,222 Department of Agriculture 390 - City of Tshwane 87,220 55,731 City of Durban 83,827 3,705 Eskom 6,525 - Breede Valley Municipality 13,800 22,844 Rand Water 4,364,085 - Mbombela Local Municipality 16,293 - Msunduzi Municipality 36,122 55,479 5,883,215 2,264,011 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 95

Related Party Transactions (continued) March March 2011 2010 Accounts receivables Ezemvelo KZN Wildlife 9,720 2,910 Cape Nature Conservation 19,227 4,213 Department of Environmental Affairs 1,146,874 16,608 CSIR 1,812 4,800 South African National Parks 2,396 - South African Environmental Observation Network 6,820 - Department of Water Affairs and Forestry 836,109 - Working on Fire 7, 800 6,633 2,030,758 35,164

The transactions with related parties are at normal market prices. Payments to key personnel are detailed in notes 31 & 32 to the financial statements. Management is required to declare all instances of interests in contracts relating to SANBI’s business.

21 Going Concern Management are presently engaged in various initiatives to ensure the sustainability of the Institute. The short term strategy comprises an approach to National Treasury (via DEA) for a cash injection in the mid-term budget adjustment process combined with the ongoing cost containment measures implemented since 2008/2009. The long term strategy comprises a request to National Treasury (via DEA) for an increase in the MTEF baseline together with iniatives to increase the return on assets through greater commercialisation. At the date of these financial statements the requests have not formally been communicated to National Treasury and there is thus uncertainty as to the outcome thereof.

22 Consumables March March 2011 2010 R R

Consumables 48,647 57,208 Corporate clothing 49,075 53,769 97,722 110,977

The amounts for consumables recognised as expense is R13,225 (2010: R521,839). SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 96

23 Other Income March 2011 March 2011 R R Commission Received 205,311 296,304 Courtesy car 359,116 267,687 Guided Tours 394,948 331,378 Professional Services 116,724 739,353 Publications 133,320 87,616 Royalties 51,210 52,934 Seminars & Workshops 3,200 149,258 Sundry Income 2,510,822 2,304,645 Use of Gardens Facilities 174,571 159,766 Film location fees 184,511 172,354 4,133,733 4,561,295

24 Reconciliation between budget and statement of financial performance Reconciliation of budget surplus with deficit in the statement of financial performance Net deficit per the statement of financial performance -2,274,606 Adjusted for: Fair value adjustments -1,646,045 Deficit on the sale of assets 185,298 Net decrease in provisions -512,113 Government Grant -6,449,000 Trading income 256,053 Gain from Defined Benefit asset -512,823 Own Income 10,891,569 Other grants, sponsorships and donations 32,933,821 Personnel costs - MTEF 13,181,647 Personnel costs - Projects -2,852,922 Deprecation 12,419,498 Operating Costs -31,768,763 Infrastructure costs capitalised -10,000,000 Cost of sales 975,910 Surplus as per approved budget 14,827,523 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 97

25 Standards of GRAP approved but not yet effective SANBI has not early adopted the following standards of GRAP which have been issued but are not yet effective. The ASB has indicated when these standards will be effective. GRAP 21: Impairment of non-cash generating assets GRAP 23: Revenue from non-exchange transactions GRAP 25: Employee benefits GRAP 26: Impairment of cash-generating assets GRAP 103: Heritage assets GRAP 104: Financial instruments

26 Operating expenses 2011 Restated 2010 R R Recruitments Costs 345,243 627,128 Staff Training 328,293 1,411,896 Staff Bursaries 409,152 59,113 Staff Teas and Functions 324,634 322,566 Bank Charges 649,206 708,468 Consulting fees 17,198,462 16,626,490 Insurance 1,503,000 1,372,507 Legal Fees 611,105 956,055 Postage, Photocopy, Courier 971,107 1,729,576 Professional Services 8,874,895 8,113,183 Rent Payable 189,559 57,391 Sundry Administration costs 1,526,603 1,616,100 Stationery 477,473 655,055 Telephone 2,806,039 2,073,008 Repairs and Maintenance 5,338,937 5,288,112 Cleaning 1,872,382 1,792,570 Cash Collection Fees 1,896,150 1,830,502 Congress, seminars 1,776,775 1,375,713 Electricity 2,978,171 2,041,973 Field Trips 4,818,525 2,950,222 Photography, Railage and Hire 781,297 536,020 Refuse 217,462 50,665 Security 4,649,401 5,148,442 Travelling costs 14,007,612 12,436,951 Water 1,376,443 1,422,442 Computer & Internet expenses 8,421,101 8,035,078 Other 1,616,816 2,119,453 Total 85,965,843 81,356,679 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 98

27 Direct Project Expenditure Direct project expenditure comprise amounts which are incurred in the process of achieving agreed project deliverables, which excludes certain indirect project costs.

28 Soccer World Cup Expenditure In response to the call to support the National Soccer Team (Bafana Bafana) in the World Cup, staff of SANBI were supplied in June 2010 with Corporate T-Shirts that had the SANBI Logo, SA National Flag, and the Bafana Bafana colours. The cost of these memorabilia amounted to R90 321 and is included in personnel costs. The number of T-Shirts are 786 at a cost of R115 per T-Shirt. 2011 2010 R R Purchase of world cup apparel Quantity Amount Amount T - Shirts 786 90,321 -

Total World Cup Expenditure 90,321 -

29 Biological Assets Reconciliation of carrying amounts of plants for resale

Carrying amount at 1 April 2010 - - Gain arising from changes in fair value less costs to sell 975,910 1,040,485 Decreases due to sale of plants (975,910) (1,040,485) Fair value of closing balance 670,135 - Carrying amount at 31 March 2011 670,135 -

These biological assets consist of plants for sale in SANBI’s nurseries and are therefore consumable biological assets. The fair value of these plants was determined using an estimated selling price based on marked prices at SANBI nurseries. Given that no additional staff is employed for selling the plants and very little time is actually spent by existing staff on selling plants, costs to sell are considered negligible, and are therefore not taking into consideration in determining the valuation of the plants. As these plants represent excess stock of plants actually grown for use in the gardens, the period between when the plants meet the definition of biological assets and actual sale is too short to result in changes in value either of a physical or market-related nature. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 99

30 Prior period errors 30.1 Effect on fair value gain not recognised on Biological Assets In the prior period, SANBI did not recognise the fair value gain on biological assets and the resulting balance on plants that were made available for sale to the public as required by GRAP 101. Therefore, when the biological assets were sold, no resulting cost of sales was recognised. As a result, the fair value adjustment and cost of sales line items in the Statement of financial performance were understated. As at 31 March 2010 and 2009 SANBI did not have plants on hand for sale and as a result this error has no effect on the Statement of financial position. March 2010 R Effect on prior period statement of financial performance

Increase in fair value adjustments 1,040,485 Increase in Cost of Sales 1,040,485 Net effect on prior period deficit -

30.2 Effect of the correction of classification between Property, Plant and Equipment and (i) Intangible assets and (ii) Investment property (i) Adjustment relating to Intangible assets incorrectly classified to Property, plant and equipment in the prior year. The cost of Property, plant and equipment and of Intangible assets at the beginning of the year was restated. The effects of the prior period classification error on the statement of financial position and statement of financial performance are shown below: (ii) Land and buildings held to generate rental income previously classified as Property, plant and equipment now correctly classified as Investment property.

March 2010 Prior period Prior period error: March 2010 as previously error: Investment Intangible assets restated stated Property R R R R Statement of Financial Position Property, Plant and Equipment at cost 261,357,889 (84,151,757) 407,711 177,613, 842 Accumulated depreciation (68,693,037) 8,024,996 - (60,668,041) Net Book Value at the end of the financial year 192,664,852 (76,126,761) 407,711 116,945,801

Intangible Assets at Cost 4,745,936 (407,711) 4,338,225 Accumulated depreciation (2,625,065) - (2,625,065) Net Book Value at the end of the financial year 2,120,871 (407,711) 1,713,160 Investment property at cost - 84,151,757 84,151,757 Accumulated depreciation - (8,024,996) (8,024,996) Net Book Value at the end of the financial year - 76,126,761 76,126,761 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 100

30.3 Reclassification of unspent committed project funds At the end of the 2010 financial year a donor released SANBI from its obligation to repay certain unspent funds. These funds formed part of the Unspent committed funds at the end of that year. The effects of this prior period error on the statement of financial position and statement of financial performance are shown below:

March 2010 as Prior period March 2010 previously stated error restated Statement of Financial Position R R R Unspent commitments funds (62,445,307) 979,879 (61,465,428) Opening Accumulated Surplus (129,788,874) (979,879) (130,768,753) Statement of Financial Performance Other grants, sponsorships and donations (136,967,022) (979,879) (137,946,901)

30.4 Reconciliation of prior year opening accumulated surplus due to prior period errors

Accumulated fund at beginning of year - 1 April 2010 (Previously reported) (129,788,874)

Prior Period Errors (979,879) Unspent Committed Funds (979,879) Accumulated fund at beginning of year - 1 April 2010 restated (130,768,753) SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 101

31. Board Committee Members’ Emoluments

Fees for the Board Committee meetings for the period 1 April 2010 to 31 March 2011 (1 April 2009 to 31 March 2010) were as follows: 2011 2011 2011 2010 2010 2010 R R R R R R Board Member’s Name Fees Travel Total Fees Travel Total Mr T Sokutu Board Chairperson ------Dr T Abrahamse CEO ------

Mr T Frost 32,044 803 32,847 27, 84 4 22,606 50,450

Prof P Omara-Ojungu 7,493 - 7,493 13,765 11,270 25,035 Dr P Hanekom 36,639 6,893 43,532 23,876 3,700 27,576 Ms Thoko Dingaan 8,826 - 8,826 10,839 - 10,839

Ms K Montgomery * 9,991 1,448 11,439 16,494 1,448 17,942 Mr S Somyo 4,995 - 4,995 16,494 - 16,494 Mr F Mketeni ** ------Ms M Pyoos *** ------99,988 9,144 109,132 109,312 39,024 148,336

* Resigned at the end of November 2010 and recalled as from 1 June 2011. ** No honoraria were paid - State employee. *** No honoraria were paid - State employee. Resigned at year end March 2011. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 102

32. EXECUTIVE MEMBERS’ REMUNERATION: Executive Management 2011 Post- Short-term benefits employment benefits Service Cell phone Performance Medical & Travel Name Status Salary Non Pens Allow Bonus Allow Bonus UIF Allowance Gratuity Housing Pension Total R R R R R R R R R R R TE Abrahamse CEO 834,908 325,953 68,717 - - 34,737 60,000 - - 67,772 1,392,087 MJ Netshiombo Chief Director HR 517,6 41 102,341 42,604 16,200 - 25,617 133,438 - - 42,018 879,859 KE Maze Chief Director Bioregional Plan 502,453 191,313 41,354 12,480 - 21,057 41,400 - - 40,785 850,842 CK Willis Chief Director Gardens 517,6 41 235,779 44,734 12,480 - 25,617 - - - 42,178 878,429 GF Smith Chief Director Research 525,407 223,838 43,243 12,480 - 21,057 - - 20,400 42,649 889,074 GF Midgley Chief Specialist Scientist 487,710 218,951 40,141 12,480 - 27,417 - - - 39,589 826,288 JS Donaldson Chief Director Research 502,453 168,153 41,354 5,200 - 25,617 60,000 - - 40,785 843,562 MC Rutherford Chief Specialist Scientist 446,044 187,948 36,710 7,500 - 1,622 - - 36,000 36,207 752,031 JS Dini Director Research (WFW) 414,546 87,350 34,119 8,400 - 8,997 113,287 - - 33,650 700,349 AC Stephens Program Manager Grasslands 413,033 197,326 - 12,480 - 7,527 72,000 - - - 702,366 AY Koyo Deputy DG 302,075 13,805 25,010 675 - 250 - 32,145 - 3,910 377, 870 CH Mbizvo Deputy DG 665,705 314,680 57,741 16,200 - 21,057 - - - 54,258 1,129,641 ME Khoahli CFO Finance 592,035 101,102 46,586 16,200 - 25,617 158,964 - - 45,945 986,449 AT Smith Director Finance 396,437 199,045 32,629 - - 1,497 - - - 32,180 661,788 P Gozo Director Mark and Com 402,382 194,529 33,118 - - 8,997 - - - 32,662 671,688 PH le Roux Agricult Tec Supp 408,421 185,501 33,615 13,520 - 21,057 - - - 33,153 695,267 ML Hamer Director Research 402,382 202,029 33,118 - - 1,497 - - - 32,662 671,688 SM Mpungose Director IT 476,005 237,982 40,962 16,640 - 1,497 - - - 38,621 811,707 SN Matai Director Biodiversity 402,382 124,029 34,774 10,200 - 1,497 78,000 - - 32,787 683,669 ES Moeng Director Human Resources 402,382 194,529 33,118 5,760 - 8,997 - - - 32,662 677,448 SW Willoughby Director Info & Know Man 402,382 202,029 34,774 9,600 - 1,497 - - - 32,787 683,069 AL Driver Director Bio Policy 402,382 194,529 34,774 7,500 - 8,997 - - - 32,787 680,969 TR Frantz Director Research 439,986 207,230 36,213 - - 15,177 - - - 35,715 734,321 KB Mantlana Director Climate Change 402,382 185,949 33,118 12,480 - 16,862 - - - 32,662 683,453 M Barnett Director Fynbos Bio Prog 402,382 141,689 33,118 5,000 - 16,497 45,341 - - 32,662 676,689 VI Malema Director Education 396,437 68,365 24,583 10,400 - 1,497 75,959 - 54,720 31,576 663,537 12,057,993 4,705,974 960,227 223,875 - 351,755 838,389 32,145 111,120 922,662 20,204,140 SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011 continued 103

32. EXECUTIVE MEMBER’S REMUNERATION: Executive Management 2010 Post- Short-term benefits employment benefits Service Cell phone Performance Medical & Travel Name Status Salary Non Pens Allow Bonus Allow Bonus UIF Allowance Gratuity Housing Pension Total R R R R R R R R R R TE Abrahamse CEO 789,593 303,571 64,827 - - 33,627 60,000 - - 64,081 1,315,699 MJ Netshiombo Chief Director HR 482,311 84,782 39,599 10,800 - 25,077 133,438 - - 39,143 815,150 KE Maze Chief Director Bioregional Plan 468,160 174,725 38,437 9,360 - 19,167 41,400 - - 37,995 789,243 CK Willis Chief Director Gardens 482,311 218,220 41,975 10,400 - 25,077 - - - 39,321 817,304 GF Smith Chief Director Research 489,546 205,978 40,193 9,360 - 20,703 - - 20,400 39,730 825,910 MM Wolfson Director Research 326,706 151,644 35,612 - - 13,418 - 128,899 - 26,953 683,232 GF Midgley Chief Specialist Scientist 454,424 127,414 37,309 5,200 - 24,192 77,000 - - 36,880 762,419 JS Donaldson Chief Director Research 468,160 151,100 38,437 - - 25,782 60,000 - - 37,995 781,473 MC Rutherford Chief Specialist Scientist 403,898 106,791 33,161 5,000 - 1,497 60,000 - 36,000 32,779 679,127 JS Dini Director Research (WFW) 386,253 73,200 13,119 2,800 - 9,052 113,287 - - 29,954 627,665 AC Stephens Program Manager Grasslands 386,253 183,437 - - - 3,467 72,000 - - - 645,157 M Johnson Program Manager SKEP 30,782 10,369 - - - 1,609 8,667 - - - 51,427 AY Koyo Deputy DG 631,881 317,257 38,802 19,466 - 1,553 - - - 50,301 1,059,260 CH Mbizvo Deputy DG 613,341 288,388 53,378 17,550 - 21,095 - - - 50,004 1,043,756 ME Khoahli CFO Finance 527,384 81,887 32,030 10,800 - 25,077 158,964 - - 41,956 878,097 AT Smith Director Finance 374,921 188,241 30,782 - - 1,497 - - - 30,428 625,869 P Gozo Director Mark and Com 374,921 180,796 30,782 - - 8,832 - - - 30,428 625,759 PH le Roux Agricult Tec Supp 380,544 171,650 31,243 - - 20,622 - - - 30,884 634,943 ML Hamer Director Research 374,921 188,241 9,108 - - 1,497 - - - 28,802 602,570 SM Mpungose Director IT 446,247 225,066 39,011 - - 1,497 - - - 36,546 748,368 SN Matai Director Biodiversity 374,921 110,241 32,629 5,100 - 1,497 78,000 - - 30,566 632,954 ES Moeng Director Human Resources 374,921 180,796 10,120 1,440 - 8,832 - - - 28,878 604,987 SW Willoughby Director Info & Know Man 374,921 188,241 32,629 - - 1,497 - - - 30,566 627, 855 AL Driver Director Bio Policy 374,921 180,797 32,629 5,625 - 8,832 - - - 30,566 633,369 TR Frantz Director Research 409,955 186,652 21,394 - - 15,177 - - 5,500 32,351 671,028 KB Mantlana Director Climate Change 374,921 180,851 30,782 10,400 - 8,722 - - - 30,428 636,104 M Barnett Director Fynbos Bio Prog 374,921 128,236 30,782 - - 15,492 45,341 - - 30,428 625,200 VI Malema Director Education 32,629 5,492 - - - 125 6,330 4,560 2,447 51,583 11,584,666 4,594,065 838,766 123,301 - 344,515 914,427 128,899 66,460 900,410 19,495,509 104 MATERIALITY AND SIGNIFICANCE FRAMEWORK

Treasury Regulation, section 28.3.1 requires that the Accounting Authority must develop and agree on a framework of acceptable levels of materiality and significance with the relevant executive authority. South African Auditing Standard 320 paragraph 3 defines materiality as “information is material if its omission or misstatement could influence the economic decision of users taken on the basis of the financial statements”. Materiality depends on the size of the item or error judged in the particular circumstances of its omission or misstatement.

Quantitative aspects: In setting the materiality figure the Institute considered the following: • The relationship of the amount of an item to the financial information as a whole or in total from which the item comes is the important factor. • Elements of the financial statements i.e. expenditure, capital, assets, income and liabilities when considered. • Financial statements must be free of any misstatements.

Qualitative aspects: Qualitative characteristics to assess materiality included the following aspects: • Public accountability and disclosure requirements in terms of legislation. • Compliance with legislation. • Disclosure requirements. • Sensitive situations, including transactions with officers, irregularities and questionable transactions. • Importance of information to users, especially donors. Taking the above into consideration the Institute has set materiality at R1, 8m. This has been determined by applying 0.5% to the actual expenditure for the year.

Significant aspects: Any transaction or circumstances that may have a significant impact on the Institute regardless of the monetary value is considered significant for the purpose of the framework. 2 Cussonia Avenue, Brummeria, Pretoria Private Bag X101, Pretoria 0001 SANBI Tel: 012 843 5000 • Fax: 012 804 3211 Biodiversity for Life 105